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How best to Finance a house extension
Hi,
Advice needed please.
We bought a house in Essex 8 months ago for £350,000 (90 LTV). It is thought in the 8 months of owning the house, the value has increased by £25k.
It has two Beds, 1 bathroom (badly fitted) and an a very large en suite off the master (which is the same size as the master bedroom). The pervious owner turned a bedroom into, what is now, the en suite, hence the house is now only 2 beds! Down stairs there is an small kitchen and separate small dinning room and of course a separate living room
…..the plan….
Knock dining room and kitchen into one room and have a single storey extension to form a large kitchen dinner. Remove the badly fitted bathroom upstairs and turn into a bed room (then making a 3 double bed house). Knock a doorway from the hall into the en suite (therefore now having a very large family bathroom) and leave the door way into the bedroom, thus to have a Family Bathroom and en suite in one – total cost for works, £60k in VAT.
We have £30k In savings….so, whats the best way to finance the rest? We will be remortgaging in two years, so not adverse to borrowing the money and paying it back once we remortagae (of course market condition’s dictate this).
Of course, I am banking on increasing the value of our house with an other double bedroom, large family bathroom and new open plan kitchen dinning room.
Advise on how to finance the £30k welcome please?
Cheers
Advice needed please.
We bought a house in Essex 8 months ago for £350,000 (90 LTV). It is thought in the 8 months of owning the house, the value has increased by £25k.
It has two Beds, 1 bathroom (badly fitted) and an a very large en suite off the master (which is the same size as the master bedroom). The pervious owner turned a bedroom into, what is now, the en suite, hence the house is now only 2 beds! Down stairs there is an small kitchen and separate small dinning room and of course a separate living room
…..the plan….
Knock dining room and kitchen into one room and have a single storey extension to form a large kitchen dinner. Remove the badly fitted bathroom upstairs and turn into a bed room (then making a 3 double bed house). Knock a doorway from the hall into the en suite (therefore now having a very large family bathroom) and leave the door way into the bedroom, thus to have a Family Bathroom and en suite in one – total cost for works, £60k in VAT.
We have £30k In savings….so, whats the best way to finance the rest? We will be remortgaging in two years, so not adverse to borrowing the money and paying it back once we remortagae (of course market condition’s dictate this).
Of course, I am banking on increasing the value of our house with an other double bedroom, large family bathroom and new open plan kitchen dinning room.
Advise on how to finance the £30k welcome please?
Cheers
0
Comments
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It sounds like you're doing 2 different projects, so could you do the bedroom work first and see if the increased value will let you borrow to do the rest? Or even do the work gradually?0
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I doubt you'll have much leeway with your mortgage, given that you've only had it for 8 months and it was a 90% mortgage. Best bet would probably be you and your partner each getting a £15k personal loan.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
How to finance things best?
Save up for them.
HBS x"I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."
"It's easy to know what you're against, quite another to know what you're for."
#Bremainer0 -
heartbreak_star wrote: »How to finance things best?
Save up for them.
HBS x
Absolutely, saves a fortune in interest over a lifetime, and no repayments to worry about, especially if and when times are hard!!0 -
Yep, I learned the hard way and will not use credit again!
HBS x"I believe in ordinary acts of bravery, in the courage that drives one person to stand up for another."
"It's easy to know what you're against, quite another to know what you're for."
#Bremainer0 -
Divide the project up into smaller jobs, see how much you can get done using just your savings (allow a contingency fund). Go with this to start.
In the meantime continue saving. Once the first stage is complete get your house revalued and see if you would be in a position to borrow more if rewuired.
I assume that you have multiple quotes to figure out if £60k is too much or too little to cover the work required?"We act as though comfort and luxury are the chief requirements of life, when all that we need to make us happy is something to be enthusiastic about” – Albert Einstein0
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