When a client applies for a renovation or construction loan, your estimate is read by a bank officer who has never seen the property. It has to show exactly what the money buys and whether the figure is realistic.
What lenders look for
- your full company details — name, registration number, VAT number, address, contacts;
- the property address exactly as it appears in the ownership documents;
- line-by-line detail with quantities and units — a single lump sum is not an estimate;
- materials and labour shown separately, since material prices can be checked;
- VAT on its own line, or a clear statement that prices include it;
- a date and a validity period, because applications take time to process;
- a signature.
If the loan is paid out in tranches, split the estimate into logical stages with a figure for each, so every drawdown is easy to justify.
Why estimates get sent back
Large round sums with no breakdown; a square-metre price far from the market without an explanation; figures that do not match the building project; and no clear contractor behind the document. Banks normally also want the contract to which the estimate is annexed — you can prepare one in our contract generator.
Requirements differ between lenders and loan programmes and they change, so ask the client for the document list they were given. See also LBN 501-17 and the Excel template.