Self build mortgage

subcapsular

Hi we have planning permission to knock down our existing bungalow and redevelop a two story house.

we have had the land valued (post demolition) at just over £1,200,000

we have a residential mortgage outstanding of £380k. The current lender will not entertain demolition and rebuild even though land value alone covers outstanding loan.

looking at the self build mortgage route.

I have about £300k saved towards the build.

should I try and clear my residential mortgage and apply for a self build from scratch?

The build cost will be about £800k and I will need to borrow this amount if I clear my existing morgage.

end valuation once complete will be around £2,000,000+

So my LTV even with 800k loan will be fairly good

any advice appreciated 

Hoenir

subcapsular said:

The build cost will be about £800k and I will need to borrow this amount if I clear my existing morgage.

You will need some working capital to fund the project and literally get if into the ground and upwards from there. 

amnblog

You will need detailed planning permission and the means to pay the mortgage when in force.

The self build mortgage will be a short term arrangement so you need to know what your exit from it will be (e.g. re-mortgage of completed property).

Where will you live in during the build?

If those 4 ducks are lined up you can approach with confidence a mortgage broker with experience in the self build field.