Case Study

1. SCENARIOPurchase Plus Improvements

Our client was purchasing a home that was outdated and needed many upgrades.


The “plus improvements” portion of the mortgage is not released to you until the work is done.


In order to meet the demands of the lender our buyer received quotes from the various trades that will be involved in the upgrades. The total amount required for the upgrades is added onto the mortgage amount, which is what the house will be worth after all of the renovations are complete. In most cases, your tradesman requires their fee once the work is done. We advised our client to find trades that would do the work and were ok to get paid once he received payment by the lender. NOTE – you usually have 60/90 days after closing date to get the work completed. We submit the quotes to the lender and in most cases they are approved with only few questions asked or verified.


After closing date, the lender mandates that you get an appraisal to confirm all the work has been done and the new property value. Once this is done, your solicitor will release the funds for the added home improvements to you.