Remortgage Question

ebaxter

Hi, Looking for some clarification please. We are currently in the process of extending our property. Our current lender have silly fees for additional borrowing so I have spoken to another company to remortgage.

My problem is this we purchased the property for 200k and paid a deposit of 100k. We now want to loan 135k overall to complete the building works.

The surveyor is going to view my property tomorrow with basically the back of the house missing and footings in for the new large extension. They value it as they see it so my question is if this person values it for less than 200k, lets just say 190k to simply it will I lose 10k when my morgage is switched?

I hope that makes sense! If they value it at 200k I'm fine I think or ofcourse above that but I just think given the condition of it at the moment that's unlikely.

I guess my other option is to wait until work has progressed and another valuation can be done or I just put up with the ridiculous fees my lender is asking!

Advice/comments appreciated.

many thanks.

Thrugelmir

ebaxter wrote: »

Hi, Looking for some clarification please. We are currently in the process of extending our property. Our current lender have silly fees for additional borrowing so I have spoken to another company to remortgage.

My problem is this we purchased the property for 200k and paid a deposit of 100k. We now want to loan 135k overall to complete the building works.

The surveyor is going to view my property tomorrow with basically the back of the house missing and footings in for the new large extension. They value it as they see it so my question is if this person values it for less than 200k, lets just say 190k to simply it will I lose 10k when my morgage is switched?

I hope that makes sense! If they value it at 200k I'm fine I think or ofcourse above that but I just think given the condition of it at the moment that's unlikely.

I guess my other option is to wait until work has progressed and another valuation can be done or I just put up with the ridiculous fees my lender is asking!

Advice/comments appreciated.

many thanks.

A valuer will base the valuation on the basis of its current resale value less the cost of reinstating the rear of the property. As if you sold the house tomorrow , the purchaser would need to make good the work started.

ebaxter

Hi, Thanks for your comments met with the valuer this morning and understand how they'll value it. The main question is the financial element I just want to get it straight in my head that I'm not being stupid. If they value my property at 190k for example I just want to make sure that even thought I paid 200k for it I'm not somehow losing 10k.

In my mind the way I see it is the new mortgage company will repay our outstanding loan of say 100k, to simplfy things, and they will then give us the additional amount we wish to borrow which happens to be 35k. It just means with the present state of the property I have a slightly lower valuation and a slightly worse LTV not have lost 10k somewhere?