still possible to "release" future equity

beecher

Can't see it happening -even with the figures you produce you'd be close to negative equity, and be in the position where you'd have to pay more for a mortgage. Far more sensible to overpay by that same amount, and try to keep out of negative equity. Maybe in a few years you'll be seen as a less risky customer, but at the moment I can't see a lender touching you.

Robert_Sterling_3

Nobody is giving you the answer you would like.

paulfaz

chatnoir wrote: »

We bought it because we wanted to extend it.

If we borrow an extra £25-30k to do a loft conversion and that adds £40k to the re-sale price then that would take us out of negative equity.(these are just estimate figures obviously) and all of this is just in the planning stages.

err....you reckon? I suggest you may be in more negative equity than you are now. The work will make your flat more attractive to buyers - that's about it.

chatnoir

Robert_Sterling wrote: »

Nobody is giving you the answer you would like.

That may be the case, but this is just one option we are looking at. As a fellow MSEr I was just looking for advice and info as I am quite new to mortgages etc, surely thats what these forums about...I'm sure martin didn't start them just for people to post sarcy comments, and poor nothing negativey over peoples idea. You might not agree with what we are planning on doing but as I say its all in the PLANNNING stages right now hence why I am looking at our options.

Thanks again

GGGG

chatnoir wrote: »

That may be the case, but this is just one option we are looking at. As a fellow MSEr I was just looking for advice and info as I am quite new to mortgages etc, surely thats what these forums about...I'm sure martin didn't start them just for people to post sarcy comments, and poor nothing negativey over peoples idea. You might not agree with what we are planning on doing but as I say its all in the PLANNNING stages right now hence why I am looking at our options.

Thanks again

Chatnoir,

Perhaps sometimes the way an answer is phrased can be misinterpreted- I don't believe anyone intended to deliberately offend you, but most agree that what you're proposing doesn't make sense financially.
Unfortunately, I have to concur; it's unlikely that you'd be able to borrow to fund the alterations, because lenders start from the basis of protecting their own interests first. I'm sure that your plans to extend were well-intentioned, but the execution of those plans is likely to cause you problems if you go ahead. That's what people are trying to warn you about.....

mikeopvc

chatnoir
I too thought of this idea a while ago so completely understand your thinking, I bought my place with the intention of developing and increasing the value, we even have planning permission for a complete refurb which would make a huge difference in terms of size and value.
Trouble is we can't yet borrow the money we need to do the work as we now have less equity than when we started.
In an ideal world we could just say to the lender,
"my house is worth £100k but if you lend me £30k I will make the house worth £150k"
In reality I think we will just have to wait untill we have sufficient equity to go ahead.
It's a shame when you come on here though for advice and people just reply with:

TrollfeverQuote:

Save for it.

You won't find many people offering advice on how to get more into debt, which I suppose is a good thing, although you have probably done your sums and believe you could afford the increased payments required to follow your dream, your lender won't agree in this current climate.
It's not even possible to get a 100% mortgage now but your asking for more than that.
Sorry if this seems like just another negative reply but I thought as I am in the same situation I would let you know that you are not alone, there are probably lots of people with dreams and plans but we will all have to wait until things improve.

chatnoir

Thank you GGGG and mikeopvc, this was more the advise I was looking for, and I did have the feeling this would be the response, but needed to find out for sure really. when the our mortgage deal runs out in November our monthly payments will decrease dramatically, so we will maybe have to over pay for a while just give us some breathing room.

thanks again