Financing an extension

Ms_Brush

We are planning to extend the house next year, and will need to increase borrowings to achieve this. Salarywise, we can support this, but not sure about the lending situation these days.
We currently have a LTV of approx 75% (£150k mortgage, property valued at approx £200k to account for the fall in prices - the house was valued at £230k in 2008). The mortagage is with HSBC, on a tracker at 2.99%, so not looking to change lenders.

We are in the process of getting some quotes for the work, and it is likely that the extension will add another bedroom and a reception room, provided the figures stack up. At this early stage we estimate we will need £40-50k to achieve what we want to do.

What is the best way to finance this?

dimbo61

You have not mentioned your joint income or any savings.
Your current maybe OK to lend you the money you need for the works but they will want to see plans, income, deposit LTV , etc

Muscle750

We borrowed £30k to extend our house which has now finished and has been very worthwhile and we are very pleased with we didn't have to submit any plans or any other documents other than payslips and I think other ID our Ltd is still around the 60 percent mark however I would saŷ get at least three estimates and as you will have the money sat in a bank lets just sat there may well be room on "VAT" however if you require planning permission be warned that the contractor may well want to keep it above board on the VAT front as its not unknown for the planning and HMRC to compare notes as in why you mr builder say you've only had £100 income with vat charged yet you've just stuffed a £40 k extension that we passed plans on. I managed to get VATed" on only £5k which the saving to me paid for the big double walk in shower in the ensuite and other ancillaries inc all the new bedroom furniture etc however hue builder supplied his own plumber who tried to take the p155 he had all the stuff delivered then half of it disappeared and the builder quoted me £800 for the plumbing I supplied all the bathroom stuff then I had to pay the plumber direct again from a vat point and he tried a £2300 invoice to which he was told to "grow up" in the end after he threatened me with all sorts he settled on the £800 after I showed him the abortion of pipe work he Intially carried out acting illegally by putting plastic feed pipes straight off the boiler and saying that he was going to get some free advertising with the real vent authorities plus we saved as my sons a electrician so we rewired. the whole house at the same time with data points everywhere all my expensive surround sound cables in the walls under the floor etc 150 metres of Chord speaker cable not cheap by any means it was a mess for three months but well worth it had it valued and its now worth £160k more than what we bought it for 12 years ago but we don't want to sell it best part of it now the kids have grown up and gone its a bit rattley at times the previous owner also extended it with a 30 ft kitchen diner on the back of the house as well so we aren't exactly short on space as I've worked out on floor space there's now over double what there was when it was built in 1966.
We financed it with Santandar who I know a lot of people slate but I've never had a problem with