Does that home you purchased years ago need major renovations to function better or maybe tearing it down is a better option. You’ve grown to love the neighborhood, the schools, even the property itself and don’t want to move. Before you make your decision and draw up plans you’ll also need consider the following tips from Lida Homes.
Can You Tear Down Your Home
The first place you’ll want to visit is your town’s zoning, planning and building departments to see what they allow. If you plan to build a home with a larger footprint, more square footage or height you’ll need to find out any restrictions. If your home is in a historical district there may be regulations in place that prohibit tearing down your home. You should check with your gas, electric and water utilities to learn how to disconnect them from your home and costs involved. An inspection for toxic materials such as asbestos or an old fuel tank will be required as well. It’s important to follow the above steps before you design a home you can’t build.
The Cost To Tear Down Your Home
The cost of demolition can range anywhere from $5,000 to $25,000, haul the material away and cover the disposal fees. If your home had asbestos or a buried fuel tank ( a leaking tank will require soil remediation ) expect to pay even more. And don’t forget the price of a demolition permit.
How To Finance The Tear Down & Replacement Of Your Home
Unless you’re one of those fortunate enough to own your home outright you need written permission from your lender. Your lender will not grant permission if the loan balance is more than the value of the land since the land is the only equity remaining after demolition. Failing to obtain permission from your lender and the default clause in your mortgage could land you in legal trouble. If you have an existing mortgage you’ll need a loan to cover the balance owing on your existing home, the demolition and construction of a new home. Your lender will consider whether you will have enough equity in your property after demolition and repayment of your current loan balance. The equity is needed to serve as a down payment for your new loan. They may decide you do not have enough equity or question whether the value of your finished home will be sufficient to support the total of your new home. The lender needs to be certain should you default on the loan they can recover the balance by selling the property by having an appraisal done.
A local builder in your area will be familiar with local regulations contact an experienced custom home builder Victoria BC.
