Property value has increased, can I release some capital to renovate further?

TheWaj

Hi, 

We purchased our property 7-months ago and have done a significant amount of renovation to the property which, following discussions with two different local estate agents, has increased its value by £60k. 

I would like to renovate further but do not have the available funds to do this. I would therefore like to release money on my mortgage / take our additional lending on my mortgage to be able to do this work. 

Can anyone please advise of the steps involved? 

I assume:
- initial valuation from estate agent
- contact mortgage providers to request formal revaluation to verify figure
- discuss additional lending limits 
- agree/proceed (if viable) 

In terms of numbers my end: 
We bought for £430k with a mortgage of £340k. The property has been valued by two separate local estate agents with ranges of £475-500k. One have provided a letter to advise a valuation of £490k. I would like to release £50k to knock through the kitchen / dinning room to create a large modern kitchen / family / entertaining space. 

What are the issues that I haven't considered? 

I'm new to this so guidance specifically related to the above context is appreciated.

Thanks,

Thrugelmir

Can you afford a £390k mortgage? 

TheWaj

Thrugelmir said:

Can you afford a £390k mortgage? 

I believe I should be able to push up to that limit, yes. 

Thrugelmir

Then apply to your lender for a home improvement loan. Worth checking what LTV they will lend up to. In case the valuation is lower that your estimate. Before applying fully cost the works as well.