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House extension - how to fund?
pandalove
Posts: 3 Newbie
We are due to have a baby in October and are struggling to find a house with an extra bedroom within our budget. We can however probably get a higher mortgage but the problem is with the drop in house value and the banks pulling back on LTV, I doubt whilst we could afford a higher mortgage they would give us the money as we would be over 90% LTV versus the market value as at now.
Do we know of any banks that look at extensions as adding value to a house and thus not diluting LTV by giving a mortgage for an extension?
Do we know of any banks that look at extensions as adding value to a house and thus not diluting LTV by giving a mortgage for an extension?
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Comments
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Guess not. Thanks for the advice...................0
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No.
Have you any savings? A building project is a nightmare with only adults in the house.
Have a chat with a local plans man (look in the local paper) and ask him what you're likely to be able to build on your house and what he thinks the cost is.
Do you have a house now?0 -
many people fund extensions using unsecured personal loans from banks etc. OK they cost more but why do you want to add it to your mortgage?0
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We are due to have a baby in October and are struggling to find a house with an extra bedroom within our budget. We can however probably get a higher mortgage but the problem is with the drop in house value and the banks pulling back on LTV, I doubt whilst we could afford a higher mortgage they would give us the money as we would be over 90% LTV versus the market value as at now.
Do we know of any banks that look at extensions as adding value to a house and thus not diluting LTV by giving a mortgage for an extension?
Most will re-value the property AFTER the work is complete. So either use a bridging loan and re-mortgage afterwards, or negotiate phased payments to the builders with as much as possible at the end, by when you can get the mortgage based on property's increased value.
Phased payments are a good idea anyway - NEVER pay the builder in advance!0 -
You may get a shock at builder's estimate for an extension, it will prob cost more than value it will currently add.If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales0
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