Residential remortgage, Development finance or Self Build mortgage?

Avro1995

Hi All,

I was wondering what route is best/only option to go down for this scenario. My friend has a main residence (£400k value) with around £110k mortgage. He has separated some land at the back of his property and got planning permission to build a new house there. He wants to raise approx £200k to build this new property at the back of his. His eventual plan is to move into this new property when its finished and sell the current one.

Can this type of finance raising be done via a traditional remortgage/further advance capital raise or does it need to be specific self build / development finance. Assume all relevent titles / planning / building regs to be in place. He is a builder himself.

How is this sort of finance best set up / to speak with? 

ACG

It really depends on his circumstances. 
If his income is enough, he could raise the money against his home and use that to do the work or he could go down the self built route which would usually be released in stages. It would likely be more expensive and more hassle but he only pays interest when he draws down on it. 

If he wants it quick and without too much hassle then development finance would be quicker/easier but more expensive. 

He could do with sitting down with a broker really to go through the options with all the facts.