Guidance on remortgaging to renovate existing property and how valuations work

sards

Hi all,
I'm looking for a bit of advice please. My mortgage product is up for renewal. My current debt is £322,000 and identical houses like mine have sold for around £550,000. I am contemplating taking £60k out of my mortgage to do a loft conversion & garage conversion, turning the house into a 5 bed with two reception rooms. Locally, 5 bed homes go for £600K+. I've got a planning architect working on the plans for me but my current mortgage expires in May. I was wondering what the standard process is for remortgaging to unlock some cash but also get a favourable forward looking valuation? A £600k vs. £550k valuation equates to a 1.3% vs. 1.55% 5yr fixed, so naturally I would like a favourable forward looking valuation. I am confident I can get all the planning sorted before I come up for a re-mortgage, but your advice/guidance on this would be really appreciated.

K_S

@sards Mainstream lenders (the kinds that will offer 1.3%-1.55% rates for 5 year fixes) will take into account the value at present (so around 550k), not the future post-conversion value.

Finding an appropriate lender to remortgage and release an additional 60k for the work outlined on an existing mortgage size of 322k on a house valued at 550k should be a fairly straightforward exercise.

You could always consider remortgaging to a low/no ERC product and once the work is complete consider remortgaging again to further bring down the LTV. Though to be honest, given the relatively low LTV to begin with (322k+60k on a 550k house, so <70%) I doubt that'll be a cost-effective route to take.