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Probably a really silly question.
Tinkaf1
Posts: 100 Forumite
We have been looking for ages for a 3 bed house or bungalow for about the 200k mark. I just can't find one that ticks enough of the right boxes for us.
However I have seen a really nice 2 bed, and the neighbours seem to have extended theirs. Now I said to hubby if we could get it a bit cheaper, say 185k could we not have the extension done as by borrowing extra for the mortgage. He said that no, unless we had the money to cover the extension in the bank after the sale had gone through, then the bank wouldn't lend it us as we wouldn't have the equity in the property to cover it. Is that right?
It is a shame because this bungalow is lovely, has such a gorgeous garden, in the right area for us etc.
However I have seen a really nice 2 bed, and the neighbours seem to have extended theirs. Now I said to hubby if we could get it a bit cheaper, say 185k could we not have the extension done as by borrowing extra for the mortgage. He said that no, unless we had the money to cover the extension in the bank after the sale had gone through, then the bank wouldn't lend it us as we wouldn't have the equity in the property to cover it. Is that right?
It is a shame because this bungalow is lovely, has such a gorgeous garden, in the right area for us etc. 0
Comments
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Hubby is right. The mortgage is only for a percentage of the purchase price.
However, you could opt to take out a larger mortgage with a smaller deposit, and use the money for the extension. That would depend on how much money you have for a deposit though, you would need at least 10% for a mortgage.
Could you utilise a downstairs space until you could afford to extend?0 -
It is a bungalow, or I would definately use a sep dining room until we had the money. We will be doing a 10% dep anyway, but what money we would have left I don't think would be enough for an extension. I am guessing an extension would be about...15k ish? Can't even convert the attic space as the pitch is too shallow. :-(0
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