Re-mortgage for home improvement, house value

Jam_Warrior

This may be a stupid question, but can you include the anticipated increase of value to your house in any way in a re-mortage to borrow extra cash for home improvement?

If I borrow a big wodge of cash and use it to successfully add significant value to my house (eg loft conversion adding extra bedroom) then pretty much as soon as the work is done my house value will have shot up and I'll be looking to remortgage ASAP to leverage the greater LTV ratio.

It all seems very odd to be taking out a mortgage planned to be so short term, but I'm guessing as the banks don't know for sure your renovations will work out, that's just how it has to be?

Thrugelmir

Jam_Warrior wrote: »

This may be a stupid question, but can you include the anticipated increase of value to your house in any way in a re-mortage to borrow extra cash for home improvement?

There's no basis to value the property on. Can only be on the property as it currently stands. You could spend the money borrowed on something else. Or never finish the works .

csgohan4

doing up your property using X cash does not mean your property goes up by X amount, bare this in mind