Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • chris1012
    • By chris1012 13th Jun 17, 10:58 PM
    • 310Posts
    • 15Thanks
    Remortgage freehold property for Renovation Works?
    • #1
    • 13th Jun 17, 10:58 PM
    Remortgage freehold property for Renovation Works? 13th Jun 17 at 10:58 PM
    I currently own a freehold property (no mortgage on it) and want to take out a refinance plan from the bank to use on some renovation works.

    Does anyone know the risks involved?
    I know that the bank will become co-owner of the property but does that mean I would have limitations if I wanted to sell the property prior to paying off the loan in full?

    The loan amount is only 14% of the property value.

    Any help on this topic will greatly appreciated.
Page 1
    • glosoli
    • By glosoli 13th Jun 17, 11:27 PM
    • 561 Posts
    • 305 Thanks
    • #2
    • 13th Jun 17, 11:27 PM
    • #2
    • 13th Jun 17, 11:27 PM
    If you sold the property, you would redeem the mortgage in full.

    Until then, you would be bound by their General Home Loan Terms and Conditions, which specifies in legal terms what you must and must not do, i.e you must have buildings insurance, you must not rent the property out without consent, etc.

    The bank won't become co-owner of the property in that sense, however they would have first legal charge on the property.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

998Posts Today

7,378Users online

Martin's Twitter
  • Byebye! I'm about to stop work & twitter, to instead spend glorious time with Mrs & mini MSE. Wishing u a lovely summer. See u in 10 days.

  • WARNING Did you start Uni in or after 2012? The interest's rising to 6.1%; yet it doesnt work like you think. See RT

  • RT @JanaBeee: @MartinSLewis Boris is the anomaly (coffee), the others are versions of normal (beer). Lots of same candidates = vote share d?

  • Follow Martin