Additional borrowing on mortgage AFTER renovations/extention

riderjules

Hello, can anyone share experiences of getting additional borrowing from their existing mortgage lender, after renovation and/or extension work was completed - did they ask you what the property was now valued at, and take that? Or did they come physically to revalue? Any idea what concrete things they based their valuation on? e.g. of course the extra space. But did they also consider improvements to insulation, additions like UFH, the overall quality of the finish/design/layout, etc?

MWT

Take a look at your lenders intermediary web pages, there is usually quite a bit of useful information there on things like additional borrowing, LTV limits depending on use of funds etc....

This is for Nationwide for example...

https://www.nationwide-intermediary.co.uk/products/additional-borrowing

In general though, for the valuation don't expect too much attention to the fine details, you or your broker should be able to say the value you believe it should be and if their model agrees then all is good, but for more than that it is likely to be a physical valuer visit and they they are looking to value it in just the same way they would if it was a new purchase, so check recent local comparable sales for example.

mrsmsebastian

I am with Nationwide and when I apply for a product switch I did not agree with their desktop valuation. I bought the house for 187k and we did a full renovation which includes full rewire, install a gas central heating system and changed some window units, flooring throughout, new kitchen and painting the whole house, landscaped the garden. Since Nationwide did not know the works we did they valued it at 220k but I made an appeal, they asked me to take pictures of the works we have done (i sent before and after pictures to show significant changes) as well as documents to prove it ie. certificates and receipts.
They revised the valuation to 270k.
I believe if you did a significant renovations in the house you'll achieve a better valuation. 
Eventhough I had an increased valuation with Nationwide I still ended up remortgaging with different lender as I have been offered a much better interest rate with the additional borrowing I made