Prefabricated extension - remortgage issues?

wilsthom

Hi All,

We are looking to build a single storey rear extension. 'Traditionally constructed' extensions are coming out very expensive, but prefabricated extensions such as: www.hup-home.co.uk are looking more appealing due to time and cost efficiency, and are building regulation compliant.

However, I have read that 'non-standard construction' can cause issues when trying to get a mortgage or sell a property. 

Do you know if our proposed build method would cause us issues when 1) trying to finance the extension through remortgaging in the first place? And 2) when remortgaging in the future when the extension is completed? 

I am hoping as these building methods are becoming more popular and advanced that they may be more acceptable to mortgage lenders.

Thanks in advance

ACG

I started to look into this and it seems there are lenders who are ok with it. I think I checked with Virgin, Skipton and Nationwide, the general consensus was acceptable subject to surveyors comments, which is the same for anything I suppose. 

wilsthom

thank you @ACG, do they propose increased mortgage rates due to this? Or the same as is readily available on the market please? Thank you

ACG

It would be the same rates. 

wilsthom

thank you, do you know if they are open to lending in order to finance the build (e.g. increase mortgage) in the first place please? 

kingstreet

A lender will lend for improvements based on current value only, not on the improved value. If that's sufficient you should be okay.