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Borrowing above property value to extend...
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tylerjaffa
Posts: 98 Forumite
Hello there,
I wonder if anyone can help me...my friend and I bought our council house two and a half years ago. The house needs total modernisation and our mortgage is up for renewal at the end of October.
We are considering extending the house to create another one or possibly three extra rooms.
Can anyone advise on how we should approach lenders? Our house was valued at £65K two and a half years ago, we have a £45K mortgage at present and would probably need to borrow a further £45K to do the work...will lenders let us borrow on what the house WILL be worth rather than what it is worth now?
We are sure we can afford to borrow the extra money required to build the extension as our monthly outgoings are minimul - but so is our income. We have a total household income of around £23K but only half of this is from earnings. My friend is on disability benefit.
Can anyone help?
Thanks in advance.
Vicki
I wonder if anyone can help me...my friend and I bought our council house two and a half years ago. The house needs total modernisation and our mortgage is up for renewal at the end of October.
We are considering extending the house to create another one or possibly three extra rooms.
Can anyone advise on how we should approach lenders? Our house was valued at £65K two and a half years ago, we have a £45K mortgage at present and would probably need to borrow a further £45K to do the work...will lenders let us borrow on what the house WILL be worth rather than what it is worth now?
We are sure we can afford to borrow the extra money required to build the extension as our monthly outgoings are minimul - but so is our income. We have a total household income of around £23K but only half of this is from earnings. My friend is on disability benefit.
Can anyone help?
Thanks in advance.
Vicki
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