Mortgage renewal and loft conversion

checkmate2000

Hi all

I am from london and my mortgage is due for renewal in few months.

I am looking to re-mortgage and take out additional money and perform loft conversion and extra bathroom in the loft.

I dont intend to use the loft at all but in 7-8 years i plan to sell my house and buy new one. So reason for loft conversion is to increase the house price mainly.

I plan to take out additional £30k for the loft conversion.

My question is, do you think its financials worth to do loft conversion? and would loft conversion be justified once i finally sell the house?

I was thinking to do it now because loft conversion now will cost me £30k (example) in 3-4 years that can go up to £40k! so thought rather than later get it done now

what you think i should do?

Grenage

In three to four years, you might have gained the 10k in investment interest, or saved interest on your mortgage.

What's the average boost in value in your area for an extra bedroom; I generally consider a 4-bed with a conversion to be worth a bit less than a 4-bed.

checkmate2000

10k in investment interest? is that like those stocks/bonds etc?

I dont mind investing but not sure where to strt and on what! I know many have buy to let properties but i am not keen on that due to the recent changes

Grenage

I'm just saying that borrowing money to invest in your house isn't always the best way to turn a profit. Work out how much your house would be worth based on what others have hit on the market.

brightontraveller

checkmate2000 wrote: »

Hi all

I am from london and my mortgage is due for renewal in few months.

I am looking to re-mortgage and take out additional money and perform loft conversion and extra bathroom in the loft.

I dont intend to use the loft at all but in 7-8 years i plan to sell my house and buy new one. So reason for loft conversion is to increase the house price mainly.

I plan to take out additional £30k for the loft conversion.

My question is, do you think its financials worth to do loft conversion? and would loft conversion be justified once i finally sell the house?

I was thinking to do it now because loft conversion now will cost me £30k (example) in 3-4 years that can go up to £40k! so thought rather than later get it done now

what you think i should do?

You’d make more money renting out a room then you would for the conversion now to sell in 7-8 years against the increase in value minus the conversation cost in x years time so as an “investment” non starter