Home Improvement Conundrum

dcosens

Hi.

Just wondering if there is any advice out there. I have an offset mortgage with CBS. I am in the middle of an refurbishment / extension programme. Having lived in the property for a number of years, my family and I have moved out of the house while the work is being done as it's disruptive.

I currently have funding to continue the project, but require a further advance to complete the project to the standard I wish. Ideally I want to complete the works prior to moving back in. Neither affordability or LTV is an issue on securing a further advance.

However, when I called the lender to apply for the additional amount I became unstuck as they said that the house needed to be habitable AND I had to be living in it as it was a residential mortgage. Their definition of habitable as far as I can tell is a working bathroom and kitchen. My kitchen is still operable, but my bathrooms have been ripped out and are now at first fix stage. Also, the only way to move between ground and first floor at present is via a ladder (we are moving the staircase). I was told that if this was the case, then the valuer would not sign off the valuation (even at the previous value - note: the property was valued by CBA about 9 months ago before any works began!).

I was told to call them when we had moved back in. It is possible that I can "move back in" within a month as we will have a working bathroom (toilet at least!) and possibly some stairs. As we are trying to complete the project within 3 months, but I only have 2 months funding left I don't want to get to the position where I have to move back in before stage before I apply as it will slow the project down by another month.

It all seems a bit of a circular argument and I want to find a way forward, preferably with them. I am still in the tie in period so would have penalties if I just moved to another provider (and I assume that there could be a similar problem).

Any thoughts, idea & suggestions from anyone would be useful!!

Many thanks

ACG

You could do a secured loan potentially with no ERCs. Once the work is complete, remortgage with CBS to pay off the loan.

You should also hopefully be able to take advantage of the improved LTV.

It will likely cost you more than with CBS but you are not then having to stress about getting the extra funding in time.

dcosens

Thanks a lot... I will take a look

getmore4less

How much are you looking for?

How far can you extend you credit with suppliers and trades people.

O% purchase and BT CC can extend your credit options purchase being cheaper as no fees

Obvious question - why had you nor checked you had secured enough funding to complete the project?