Remortgaging for extension

irondan11

Hi, We have a house worth £230k and mortgage of £175k. We want to do a double story extension circa £80k estimate. We obviously cannot take out equity to fully pay for the works but there doesn't seem to be any more info out there!

The house price would easily increase after the works by the £80k so would the banks allow this type of funding also? I.e. revised house valuation after works= £310k with a mortgage of £255k.

thanks,
Dan

csgohan4

you can't generally borrow more than the value of the house, banks don't look at the if, but the now. 80K spent on a house , does not always = 80 k increase in value

Speak to a broker to see your options

irondan11

A property valued at £310k as a competitor will not be as good hence why we think it is cheaper to extend rather than move. I thought this may be the case but there must be some eligibility as new builds are constructed with the 'if' aren't they?

thanks again for your help!

foxy-stoat

You might be able to pull £30,000 out and do some of the extension but you will need to fund the rest of it from savings if your lender allows you to go to 90% LTV and you pass the affordability.