Purchasing and renovating a derelict property can be a highly rewarding investment — whether you’re creating your dream home, restoring a family asset, or entering the property market at a lower cost. But financing such a project can feel complex, especially when the building is in poor condition or not immediately mortgageable.
One of the smartest ways to fund this kind of renovation is by leveraging the equity in your existing home. If your current property has increased in value since purchase, or you’ve paid down a significant portion of the mortgage, that built-up equity can be used to unlock new opportunities.
Step 1: Unlock Equity from Your Existing Property
With property prices rising across Ireland, many homeowners are sitting on substantial equity. By speaking to your bank or mortgage broker, you may be able to:
- Top up your mortgage to release a lump sum.
- Remortgage with a new lender at a better rate, increasing your loan to access the funds.
- Use a secured loan against your home to finance the purchase or renovations of another property.
Purchasing the Derelict Property
- Use the released equity to buy the derelict property in cash (if possible as standard mortgages aren’t an option due to the building’s condition.) or
- Secure a mortgage for the new property, though this may be more difficult due to the property’s derelict status (many lenders won’t offer standard mortgages on uninhabitable buildings).
Alternative: A bridging loan could fund the purchase short-term, to be refinanced later once works are complete and the property is mortgageable.
Step 2: Combine with Available Grant Supports
The Irish government currently offers excellent incentives for bringing vacant and derelict properties back into use. These include:
- 🏚 Vacant Property Refurbishment Grant: Up to €50,000 for properties vacant for 2+ years, or €70,000 if certified derelict.
- 🌱 SEAI Home Energy Grants: Substantial supports for upgrading insulation, windows, heating systems, and renewable technologies.
Together, these grants can significantly reduce the out-of-pocket costs of renovation, especially when combined with funds released from your home equity.
Step 3: Plan a Strategic Renovation Approach
At Summit Matters Ltd, we help clients map out the entire process — from assessing the viability of a derelict building, to securing grant approvals and delivering a staged, budget-conscious renovation.
Structuring the Project
We Recommend:
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- Get pre-approval for equity release or top-up mortgage before committing to a purchase.
- Engage a builder (like Summit Matters Ltd) early for estimates that align with grant requirements.
- Include a contingency budget (15–20%) for unexpected costs, especially with older buildings.
Our typical approach includes:
- Structural and safety-first repairs.
- Building envelope upgrades (e.g. insulation, windows, doors).
- Energy efficiency and modernisation measures.
- Finishing and fit-out tailored to your future use of the property.
With the right financial setup and technical support, turning a derelict property into a comfortable, valuable home is more achievable than many people think.
Need Help Getting Started?
If you’re considering this type of project, contact Summit Matters Ltd. We can:
- Help you estimate costs and timelines.
- Provide builder quotes for grant applications.
- Coordinate with BER assessors and local authorities.
- Deliver the full renovation with integrity and transparency.