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Potential Buy Needing Work - Questions

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Evening all

I have today had a second viewing on a very desireable house that requires

a) a lot of work (new kitchen, new bathroom, decoration) at a minimum

b) I would love to extend like their immediate neighbour giving a huge footprint and creating a very desirable house.

How do mortgages work in this instance?

Do they loan up to current value only - or will they lend based on an extension and work?

would they require a larger deposit that we realistically have at present.

There has been 3 offers to date (been on the market for 1 week) but the vendor is holding out for FAP or OO.

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