Extension-do you have to let Mortgage company know ?

ohmochraich

Planning to change a rickety old conservatory for a built extension. Do we have to let our mortgage providers know that we are doing this and get their permission? Thanks for any info/advice.:beer:

Thrugelmir

Yes, you need to notify your lender. Though should be a formality.

Dave_the_Ginger_Cat

And your insurer for two reasons

1) whilst the work is bring done
2) you'll have a bigger house to insurer

ohmochraich

Thanks for replies. I'm confused as some places online say yes....and some say no! Can't see anything in my documents about alterations and informing them. I'm guessing it would be buildings insurer I inform ( as all contents will be removed from the area being worked on).

kingstreet

You normally need to seek permission from your lender for any work which will impact on the value of its security. As an example, from current Halifax Mortgage Conditions (see page 27 or 31 of the pdf);-

When you must ask for our
permission

You must get our permission before you
do any of the following things relating to
the whole of your property, or any part
of it.

Make any significant changes to your
property that affect its structure or
that add to it (for example, building a
conservatory or a garage).

http://www.halifax-intermediaries.co.uk/pdf/halifax-mortgage-conditions_10_.pdf

mrchiggles

From my experience we told our lender (HSBC) and as others have said it was a formality and they sent me out a letter saying that they were fine with me extending as it wouldn't reduce the value of the house.

Our insurance company was very keen to know - they insisted on suspending all of our accidental damage cover (on building and contents) until the work had completed.

So well worth informing both for the avoidance of doubt!

gazfocus

I'm glad this question popped up because I never would have even thought that the mortgage lender would know.

In the house we're buying, we are planning on moving the bathroom from it's current location into the 4th bedroom, effectively turning the house from 4 bed to 3 bed, then after about 6 months, add a 2 story extension onto the back of the house to add two more bedrooms. In the long run, this will increase the value of the house but in the short term, the value will be reduced due to the fewer number of bedrooms.

Would we have to tell the lender of our plans to just extend the house and not mention it will be in stages, or do we have to tell them we'll be reducing the number of bedrooms for a short period?

Thrugelmir

gazfocus wrote: »

Would we have to tell the lender of our plans to just extend the house and not mention it will be in stages, or do we have to tell them we'll be reducing the number of bedrooms for a short period?

Building work diminishes the value of the property while in progress. As there's always a risk that the work is never completed. Leaving the lender with much reduced security.