Remortgage and borrowing to extend

carlsagen

Hi all.

I currently have a mortgage on a propertie I purchased 6 years ago. The propertie was in disrepair (no kitchen and previous owner had lost the plot and burnt down the barn) I saw it as a project and as such got a bit of a deal.

The mortgage is with Halifax and is out of term and running at an interest rate of 3.99% so I'm not on the best deal and I over pay.

I purchased the house for £250k and have £189k left on the mortgage. Zoopla currently suggests it's worth £350k

As mentioned above, I have a barn on my propertie and have applied for planning permission for the house to be extended into the barn. I have hesitated in applying for a new mortgage deal as I don't won't to be locked in if I need to change mortgages again. The reason I think I may need to change is because I'm not sure if all mortgages allow you to borrow an based on what the completed house value will be.

Popped into a couple of high street banks and not got much info. It was rather like walking through trecle

So what im asking is what's the best thing to do? Do I need a self build mortgage so that I can borrow enough to extend into my barn? Should I get an estate agent to value now and based on finished plans?

It's a little confusing so would appreciate any help!

King_Slayer

I think you'd be better off seeing a mortgage adviser, they will be able to advise you on lenders that fit your circumstances.

carlsagen

Hmm I thought that might be the answer. Had bad experiences with them in the past so was hoping to do something myself

Thrugelmir

You cannot borrow against a future value.

You'll need you existing lenders permission to undertake the works.

You'll need to split the title deeds of the property.

carlsagen

I'm not sure how this works? If I can't borrow on future value are you saying I have to break the propertie into separate deeds? If this is the case would the deeds of the barn require a self build mortgage? Since it's just a shell. And how would I borrow for this since it wouldn't be worth anything until done! IE its future value

And would that in turn de value the current propertie as some of the assets are moved from the existing deeds.

Sounds quite qonfusing and definitely not something for a generic highstreet bank

Thrugelmir

carlsagen wrote: »

Sounds quite qonfusing and definitely not something for a generic highstreet bank

Residential mortgages are primarily products for people to buy homes.