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    • chris1012
    • By chris1012 13th Jun 17, 10:58 PM
    • 320Posts
    • 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
    • 633 Posts
    • 366 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.
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