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Victoria | Lydian platform, delivered in partnership with Clark Finance Group
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Surrey Hills is a settled period suburb straddling the Boroondara and Whitehorse boundary, with Californian bungalows, Edwardian homes and a village strip along Union Road. It is a family market with a strong renovation culture.
Surrey Hills is bungalow country, and the renovation of those homes is the recurring project we fund. Opening up the rear, adding a second storey or reworking the layout are all common, and all involve the particular costs that come with building onto a hundred-year-old house.
Those costs are consistently underestimated. Restumping, rewiring, replumbing and dealing with what is found once walls come down are routine on homes of this age. Because construction loans are assessed against a fixed price contract, an optimistic quote becomes your problem part-way through the build rather than the builder’s.
Beyond renovation, Surrey Hills behaves like the rest of the inner east: tightly held, contested when stock appears, and with most buyers carrying a property to sell. The level crossing removal and station works have also reshaped parts of the suburb, which is worth understanding when comparing recent sales.
Restumping, rewiring and the usual surprises. Contracts and loans built around what these homes actually cost.
Common here and structurally involved. Staged finance matched to a realistic build programme.
Tightly held stock means bridging rather than selling first and hoping.
Whatever stage you are at, there is a path through it. Pick the one that sounds like you.
More than the initial quote, is the honest answer. Homes of this age routinely need work that is not visible at quoting stage. A contingency of ten to twenty per cent above the contract sum is a sensible planning assumption. Lenders assess against the contract, so any overrun needs to come from you.
Yes, that is standard construction lending. You will need council approved plans, a fixed price contract with a registered builder and a progress payment schedule. The lender values the property as completed. Bear in mind you will usually need to live elsewhere during the work, which is a cost worth planning for.
Infrastructure changes affect amenity and can affect values in either direction, and lenders rely on valuers who consider recent sales in context. What it means practically is that sales from before and after major works may not be directly comparable, which can make valuations less predictable for a period.
Compare the total renovation cost, including the contingency and the cost of living elsewhere, against the premium for a finished home plus stamp duty and selling costs on a move. In Surrey Hills the premium for a well-renovated bungalow is significant, which often favours renovating if you have the patience for it.
Book a free consultation and we will walk you through your options, what you can borrow, and what it will cost.
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Lydian Financial Services Victoria
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Copyright © LYDIAN FINANCIAL SERVICES PTY LTD 2026. All Right Reserved.