Remortgage or loan?

Not_so_Richy_Rich

Any ideas?
We bought our house for £150k.
We owe approx £140k.
We are in the lucky position to have an extension built cheaply (of a high quality) for £15k.
Going on house prices in the area a similar property would be worth £180k.
Would our mortgage company be willing to help or should I look at plan B for raising the £15k??

Thanks for the advice.

dimbo61

You have at best 95% LTV now so I doubt that your lender would want to lend you more

Not_so_Richy_Rich

Thanks.
I had a feeling that would be the case.
I take it that it makes no difference that it would greatly increase the house value for a relatively small amount?

dimbo61

No because the work done could decrease the value of the property!
swimmimg pool in yard at back of terraced house,
Putting a side extension with extra bedroom/bathroom and extra downstairs living room may add value !

Not_so_Richy_Rich

Thanks. The extension would be a side extension, increasing kitchen and adding two extra bedrooms.
Would the mortgage company entertain it?

Thrugelmir

If you can afford additional loan repayments. Build up some more equity in the property to fund the extension at a later date. As a home improvement loan or similar from your existing lender will be the cheapest option in the long term.