Help! Can I remortgage for building works?!

Credit_Help

Hi everyone,

I was hoping to get some advice from anyone who's 'bought the t-shirt' on this one...

I own a 1 bed flat and want to extend it into a 2 bed flat. I have an 85% mortgage but no money to do the building works. The problem is this...

After doing the work, the increase in value would easily pay for the building work twice over (it's in London), but is it possible to remortgage for more than your home is currently worth? Even though the work you intend to do to it would easily recoup all costs? I estimate after the works done I would only need a 75% mortgage.

Any advice would be much appreciated.

Thanks!

kingstreet

Credit_Help wrote: »

is it possible to remortgage for more than your home is currently worth?

Highly unlikely. I can't think of a lender which would do that.

Ask your own about further borrowing first, but I don't hold out much hope.

Thrugelmir

There's no possibility of being advanced money on future value. Build equity by overpaying your current mortgage in order to raise the funds.

Credit_Help

Thanks very much guys...i thought as much! Oh well.

mrchiggles

Seems to be a FAQ. If you want to be more risky about it borrow the money for the works on an unsecured loan the remortgage to cover the extended property and pay back the loan (making sure you can afford the huge loan payments while the work is happening).