Mortgage purchase plus renovation: that’s why it is advantageous
Does the house you are about to buy need to be renovated? But are you afraid of the costs that you will have to incur between the architect, construction sites, choice of materials and furnishings? Do not worry, there is the right solution for you: the mortgage purchase plus renovation. As the name itself says, it is a particular type of mortgage that allows you to obtain extra liquidity, useful not only for buying but also for renovating your home. And now there are several lenders offering this particular solution.
So let’s see together how a purchase plus restructuring mortgage works, in which cases it is convenient to turn it on and why this is the best time to request it.
How it works and why it is convenient
As anticipated, the purchase plus renovation mortgage gives the possibility – with a single loan – not only to obtain the sum necessary to buy a property, but also that destined to expand, improve or redevelop it.
On balance it is decidedly more advantageous than presenting two different questions to the bank to meet both needs (purchase + restructuring). Not only that, the interest rates in these cases can be even cheaper than those provided for in the case of a personal loan.
In general, we can say that the value that the bank takes into consideration for the estimate of the maximum payable amount corresponds to the estimated value of the property at the time of the loan request and can be paid in a single solution.
Contracts may, however, change from one institution to another, based on the policy adopted by the same. What does not vary is the amount that can be financed, which makes it possible to cover on average 80% of the budgeted and documented expenditure.
The duration of the repayment is also established based on the type of loan granted:
• up to 10 years for renovations with increased energy efficiency;
• up to 20-30 years for the purchase of the house with or without renovation.
As for the presentation of the application, then, to obtain a loan of this type it is necessary to collect the documents for the evaluation of the loan, the estimate of the company or professional to whom the work will be entrusted, as well as the building documentation regarding the maintenance works. (building project, municipal authorization, etc.).
Eco-bonus at 110%: purchase more restructuring mortgages even cheaper
The best time to sign the mortgage purchase plus renovation could only be this, thanks to the 110% Ecobonus approval in the Relaunch decree. A bonus that grants Italians the opportunity to carry out some types of work at home practically for free, using the mechanism of credit transfer and discount on the invoice.
What types of works are included in the provision?
- thermal insulation: it must affect more than 25% of the gross dispersing surface of the building, for a maximum threshold of 60,000 euros multiplied by the number of building units. The insulating materials used must comply with the requirements of the Environment Decree of October 2017;
- interventions on the common parts of buildings for the replacement of existing winter air conditioning systems with centralized systems for heating, cooling or the supply of condensing domestic hot water, with efficiency at least equal to class A, with heat pump. The maximum expenditure ceiling is 30,000 euros multiplied by the number of real estate units that make up the building and is also recognized for the costs related to the disposal and remediation of the replaced system;
- interventions on single-family buildings to replace existing winter air conditioning systems with systems for heating, cooling or the supply of domestic hot water with a heat pump, including hybrid or geothermal systems. The maximum cost is 30,000 euros and is also recognized for the costs related to the disposal and remediation of the replaced system.
But that’s not enough. Yes, because these are the so-called “driving” interventions, that is, only one of these is enough to bring the relief to 110% and open the doors to others:
- assembly of solar panels;
- assembly of energy accumulators connected to solar panels;
- interventions foreseen by the old Ecobonus;
- construction of the columns to charge the batteries of electric cars.
But be careful because in order to take advantage of the super bonus there are constraints: the works must necessarily guarantee the improvement of at least two energy classes of the building (to be demonstrated with the Energy Performance Certificate).
In addition, the works that give the right to a deduction of 110 percent are allowed in condominiums also for second homes (always excluded if single-family houses).
The expenses incurred for interventions of this type between 1 July and 31 December 2021 will be covered. However, the time to obtain reimbursements is shorter: 5 years instead of 10.
In particular, the deduction of 110 for the superbonus can be used in the tax return in five annual installments of the same amount or alternatively it is possible for the 110 Ecobonus to access the credit transfer or a discount on the invoice by suppliers, who, in turn, will be able to assign credit to banks or financial intermediaries.