Take out a loan for house refurb

freeman3030

Hi all,
We have been living in our current home for 3 years and have been refurbishing it as we go. Last year we did the garden and it looks so much better for it!
We would really like to move closer to work but can't sell our house in its current condition as it really needs a new kitchen, downstairs loo and a few other jobs doing to bring it up to the same standard as the rest of the house.
Fortunately my dad is a builder and whenever we want to do a job he comes around at weekends and happily works in exchange for a nice lunch and doughnut.
Ideally we would like to look to move in the new year but if it was next summer it wouldn't really matter. The problem we have is financing the last few jobs as we would need to spend several thousands which we don't currently have saved as we spent a good chunk last year on the garden.
We have considered a loan but we are then worried that by having a loan, that will affect our affordability for our next mortgage.
Also having taken a loan out a few months prior to selling isnt going to look good from a lenders point of view as we would be needing to borrow even more money to finance our next house purchase.
Say for instance, we were to take out a loan, do the work, sell the house (move in with my sister) and then pay back the loan before then applying for another mortgage. Would this look better on us? Or can this step be carried out in the process of selling and buying at the same time?
Any advice is most welcome

[Deleted User]

If you sell before buying, then it won't be counted in affordability.

BrassicWoman

pop down to the housing board and have a word with doozergirl about whether these changes will really add value.

enthusiasticsaver

Get a valuation from an estate agent as to what you will get if you put it up for sale now. Doing refurbs just before you move doesn't always add the same amount of value to a property as the amount spent. Presumably you have a kitchen and downstairs loo now. As you are getting free labour though and if you go for neutral it may make it easier to sell.

My choice would be 0% card but if you have no savings that will make it difficult to move. Are you sure you are not over stretching financially and wouldn't be better staying put until you have saved up?

Ilona

My house needs work doing to it, I have been in it 20 years and have not spent a great amount on it. When I want to move I will not be spending money on doing it up, I will adjust the price accordingly. I am not going to put up with all the mess of builders etc, because the next owners will probably rip it all out anyway and start afresh. I will not be able to recover the money spent on refurbishment, so it would be wasted. Tastes vary, someone else might not like the materials and colours I have chosen to update things.

My house is in a sort after area, they sell quickly round here, whatever the condition.

OP, get quotes for the work to be done, then knock that off the price. Start saving now for your next house, and sell when the time comes for you to move.

ilona

Pixie5740

Whatever you spend tarting up the property you are unlikely to see back when you sell. Adding square footage to a property adds value, a lick of paint doesn't. Declutter, fix anything that's hanging off the walls such as loose skirting and get it on the market.