Mortgage valuation - Extension

Synchrouk

Our current mortgage is due to expire in Oct.

We are starting an extension shortly.

in the event that it is still ongoing in Oct, will any new mortgage property valuations base the price on extension completed or not? I am thinking about LTV in particular here.

Thanks for anyone who has any experience/knowledge of this situation.

phlash

If your extension has the possibility of going on for 7 months something is wrong.

It should be weeks!

TrickyDicky

mortgage valuations are done on existing property specification, not potential.

Synchrouk

2 story side extension and 1 story rear extension, with complete re-tile of roof. I fully expect it to be going on, come October. Although hopefully close to completion.

Define complete please.

i.e. roof on or fittings all in and fully decorated to full living standard?

phlash

OK - I just renovated a bungalow.

Roof off, including trusses. All interior walls and fittings gone. Therefore only thing left was exterior walls.

New interior walls, new exterior supporting walls, new roof and new first floor installed. Extension to the rear, including having to go down more than 6 feet for the foundations.

Complete rewire, complete re plumb, plaster, flooring, windows doors etc you get the picture.

Work started Dec 15 - stopped Dec 23. Commenced again on Feb 10 - Now.

We are due to finish early April. Thats 10 weeks on site, generally 2 tradesmen at a time working short days 5 days a week.

If it takes to October, then theres some project management issues or something else fundamentally wrong imho.

I haven't done anything on site, are you doing much of it yourself?

Synchrouk

That is quick! I haven't seen a timescale for my build yet. I should be seeing it within the next few weeks. I hope mine gets done as quick as yours. I was planning for worst case and trying to consider who my mortgage might become affecting by any ongoing work. If its goes up quick, then great nothing to worry about....

.....but, if not, where would I stand please? Valuation wise?

phlash

It will be based on its value at time of seeing the property, not the value once it would be completed.

Lets say you finished in December, I would not worry too much....Presumably you would go onto your lenders SVR rate which may be higher interest rate but will not harm you if it is just for a few months. No need to panic here I don't think.

A build will be as quick or slow as you press for, if you're organised and can keep the contractors to timescales it is achievable in remarkably short timescales. I will often have payment terms around timescales to incentivise quick work, but will counter balance this with appropriate standards of work that are acceptable in order to stop them bodging it.