Mortgage to cover extension work

kingstreet

Loan to income and Help To Buy.

Philuk

darrenj1471 wrote: »

Yep I get it now and Im officially a little excited because I have NO doubt that spending the 50k will add 100k so I get the illustration above and its the way Im going to proceed........HOWEVER my mortgage advisor has handled all the calculations on what we can borrow and I don't know if hes only saying we can borrow X amount based on us having a 20% deposit so waiting to hear back.


Is it usual that lenders will loan you more if you put more deposit down and reduce their loan offer if you only have 15% ?

Not every £1 spent on a property will result in a £2 capital increase. Unless the sellers didn't realise or had permission on the lift conversion, he most likely had factored in this in the asking price, plus there are the usual risk such as going over budget or discovering extra work needed halfway. I am not saying it cannot be profitable, but it has a risk return ratio like any investment. You don't want to end up over leverage if things go less than perfect.