Re-mortgage and house extension

Ollienixs

Hello,

Firstly I would just like to apologise if this has been raised before, secondly thank you in advance for any information any of you have for me.

My partner and I have recently purchased a property which had planning permission with it. After 10 months we have decided to crack on and turn the bungalow into a house. The bungalow was £170k and hoping that from the plans with the estate agents that with the extension should fetch £240-£250k

We have funds to begin the building works and get the actual shell up, and get it water tight. We were then hoping that we can the remortgage against the new property value to finish it off.

My question is with a the basic valuation do they just drive by ( looking at remortgaging with nationwide)? Would they just take it as granted is the house was finished externally to a high standard or would they insist on entering the property?

Secondly if they did enter the property would they still value it based on the finished price knowing that it is a work in progress?

I hope this makes sense as I'm new to this property and mortgaging lark.

Thank you

kingstreet

If this is additional borrowing from your existing lender, this is not a remortgage, so don't look at such products on the Nationwide website, look at those for additional borrowing.

The property is likely to be inspected by a surveyor, at your expense, so you will need to finish it before applying.

I recently asked my Nationwide BDM about such a case as the owner was building an extention and his advice was not to apply until the work was complete.

Thrugelmir

Ollienixs wrote: »

Secondly if they did enter the property would they still value it based on the finished price knowing that it is a work in progress?

As a work in progress. The surveyor would have no idea as to the quality of the finished build. A part complete build may even have a negative impact on the valuation.

Ollienixs

Sorry I currently have a mortgage with first direct but will be buying myself out of current deal if I can get a remortgage deal done. So a new customer moving to nationwide will almost certainly have to have a survey and a valuation done

kingstreet

Sorry, I thought Nationwide was your existing lender. It is a remortgage if you are changing lenders and no, they won't value it as it will be if it doesn't look like that on the day it's inspected.

It may be inspected internally, or it may be a drive-by and that depends on the loan to value and the comparison with the original purchase price and the "desktop" valuation which will be done first.

Ollienixs

kingstreet wrote: »

Sorry, I thought Nationwide was your existing lender. It is a remortgage if you are changing lenders and no, they won't value it as it will be if it doesn't look like that on the day it's inspected.

It may be inspected internally, or it may be a drive-by and that depends on the loan to value and the comparison with the original purchase price and the "desktop" valuation which will be done first.

Thank you so much for your information, I was just wondering as with the property value to rise by 80k I thought they might want to see why. I have received off plan valuations from estate agents and based prices on properties sold in the neighbourhood recently