Funding an extension ?

dukesy_2

we currently live in a 2 bedroom house on a very nice private estate.

However, we NEED more space...Pref 4 beds.

We ARE able to afford to upgrade, but to buy a 4 bed anywhere else in an even vaguely similar are will involve an additional £200K on top of what we would get for ours.

The other option is to extend. We have the land available, but this will cost around £75K. But we think it will add approx £150K to house value.

Current mortage company will only lend to house value PRIOR to extensions. Add to this the fact that we are tied in to deal (thereby leading to redemption costs) for another 2 years.

Opinions please !!!


Should we

a) Remortgage elsewhere adn "bite the bullet " on costs
b) Extend CURRENT mortgage and accept the redemption charge
c) Take a secured loan for extension then consolidate once we are out of penalty period.
d) Any other ideas ???

(For ref : Currently on a 6.49% capped rate, but we like the security!)

freebo_2

I know this may not seem too helpful but I would just do the sums and work out the cheapest option over the timeframe (2 years). So long as cashflow was OK I'd then pick the lowest cost...

PoorDave

Have you checked that the extension you would want to do, getting in 2 more bedrooms, access to them, and presumably more space downstairs will get through a planning application? Having the land is one thing, whether you'r allowed to do what you have in mind is another. Are there any other people who've done similar developments nearby? Is there precedent for it being allowed?

How much of the current value of the house is mortgaged?

6.49 capped rate sounds less than brilliant - aren't most variable rates even lower than this?

dukesy_2

PoorDave wrote:

Have you checked that the extension you would want to do, getting in 2 more bedrooms, access to them, and presumably more space downstairs will get through a planning application? Having the land is one thing, whether you'r allowed to do what you have in mind is another. Are there any other people who've done similar developments nearby? Is there precedent for it being allowed?

How much of the current value of the house is mortgaged?

6.49 capped rate sounds less than brilliant - aren't most variable rates even lower than this?

Yeah..we have had an architect round informally, and he sees no probs, but yes, we will have to go through planning etc.. formally

Currently the outstanding mortgage is about 50% of the property value

This is at feasability stage at the moment, but I am interested in getting any other opinions/ideas from anyone who has "been there b4"

The 6.49 cp was GREAT at the time we took it out 5 years ago (for a ong term capped rate), but yeah..it aint great. but the £1999 redemption to come off it will prob outweigh any savings we would make over 24 months.

dukesy_2

sara2323

Hi, sorry did'nt see the thread earlier would have posted about our experience.

We also had a two bedroomed house, and have extended to four bedroorms and playroom/dining room downstairs.
I think it has been one of the best decisions we've made.

The entire extension has cost us under £30k including other bits we've added such as changing the boiler to combi and reinstalling central heating, moving the meters to front of extension etc.
In regard to financing the project we decided to take a loan fixed at 6.4, it's not a secured loan I really don't feel comfortable with secured loans.

Hope this helps, at this stage I'd definately recommend speaking to others in the area who have completed similar extensions, also have a look at the council website ours has a list of planning applications made including those approved and rejected these also include copies of plans.

Mrs_Optimist

Would be interested if anyone else has experience of this. We are looking to buy a property within our price bracket but has a slightly smaller third bedroom than we currently have.

However it is on a corner plot so there is ample land to the side for a two story extension from front to rear of property which would include two bedrooms (including ensuite in one) and dining room and playroom. To the rear of the poperty we would like to have a single story extension along the back of the house to house a kitchen diner. This would give us a 4 bedroom, three reception room house which would be huge and still leave us with plenty of room in the garden.

We aren't looking into this for investment purposes as we would be living there for the next 15-20 years whilst the kids are growing up and becoming teenagers.

HOWEVER we would like an idea of how much this would costs (also want central heating and cavity wall insulation installed) - would £50k cover it do you think? Has anyone had problems with Planning Permission? How do you go about hiring a decent architech to draw up the plans?

Any input would be appreciated.

dukesy_2

OK...So we have had an informal chat with the REALLY helpful guy from the planning dept at the council, and he has indicated that in principle he would approve what we are looking at.

So, it is now worth us having plans etc drawn up, and formally applying for planning permission.

sara2323 wrote:

The entire extension has cost us under £30k including other bits we've added such as changing the boiler to combi and reinstalling central heating, moving the meters to front of extension etc.

WOW !!! Would you mind me asking 2 things :
Was it a two storey extension with pitched roof ?
How big was it ?

We have been given ball park figures of 100 pounds per square foot for the building costs, PLUS fitting it out

We are getting quite excited now !!!!!

sara2323

dukesy wrote:

OK...So we have had an informal chat with the REALLY helpful guy from the planning dept at the council, and he has indicated that in principle he would approve what we are looking at.

So, it is now worth us having plans etc drawn up, and formally applying for planning permission.




WOW !!! Would you mind me asking 2 things :
Was it a two storey extension with pitched roof ?
How big was it ?

We have been given ball park figures of 100 pounds per square foot for the building costs, PLUS fitting it out

We are getting quite excited now !!!!!

I'm not sure exactly how big it is!! sorry we used to have a garage and the space has been converted.
I know it's not a very large space compared to our existing house, but it gives us everything we wanted a seperate dining room & playroom and two kids bedrooms upstairs. They shared a bedroom before and are overjoyed especially now that they can each choose to decorate the room the way they want! The roof is tiled.

The actual cost of the extension quoted by the builder was £22600 for all the work.

We had this figure in the Contract and summary of what work was included although I would encourage you to list everything the builder agrees to in the contract as ours changed his mind about the facia boards being installed outside as "it's not written in the contract" although verbally agreed by him. It was too late at the stage and we paid extra £200 for this plus another £200 for the windows. Apart from that he kept it pretty much within this amount.

We paid around £1000 for changing meters and others bits such as wooden floors paint, etc.
It would be a good idea to ask the builder what they include in the quote. One builder included painting and laying the floor, although the one who built the extension did not and we paid extra for this.

Secondly I will recommend getting a second opinion on any changes the builder recommends from the original plans as ours often found ways to make his work easier and cheaper! Including installing one door at the end of the stairs for entrance to both kids rooms!!!

dukesy_2

OK..

So we have now had plans drawn up, and are submitting them formally for PP shortly (althoguh we have been assured this is a formality)

So the next step is to get builders quotes in.

Herein lies the rub.

I would like to get a minimum of 3 quotes, but how do you find a builder who you can trust.

The Usual yardsticks (NHBC etc) are the best to follow, and I am insisting on some form of assured warranty (ie if builder goes bust and repairs are required, then an insurance company stumps up the cost)

But I am struggling to find anyone in the notingham area who meet this criteria. Am I being anally retentive in wanting a company who not only meet standards but have warrantys that are actually worth something ? (NB I dont mind paying a small premium for this!)

james3333

hi dukesy,
thinking at the mo of doing exactly what your doing ( leeds area)
how much did it cost you to get your plans drawn up?
and who did you speak to at your council ( job title) to ask about informal permission?>
cheers