Borrowing more for renovations?

flugelhorn_2

We bought our current home around 12 months ago for 122k but it was originally on the market for 145k and i suspect the true value is around this mark.

I would like to do some renovations to the property including a garage conversion to extend and fit a new kitchen plus make an extra room. Put stairs down to the basement (basement is size of whole house and exits to garden). Replace old heating system with new combi boiler and possibly an en suite shower/toilet in the main bedroom. In my mind this should put at least an extra 20k on the value of the house, judging by other properties in the street which have already had similar renovations done.

My question is would I be able to borrow the money to do this when I remortgage if the bank agreed that it would raise the value significantly enough? I suspect it would cost in the region of 20k do do all of the work(although i have not looked into costs significantly yet). My current LTV is around 85% and i am not locked into my current mortgage at the minute.

CloudCuckooLand

You made the true value = £122k, when the seller accepted it from you... If the value was truely £145k, the seller would have held out for it, or something nearer.

If something else nearby has sold since, then that may adjust the value of your house.

Depending on the part of the country you are in, prices may have altered approx +/- 5% since you bought.

You cannot borrow based on future value, only on current value. To keep the a decent deal, you probably need to leave 15% equity in it.

A personal loan sounds like the option you need to pursue.