Forum Home» Loans

funding house extension

New Post Advanced Search

funding house extension

3 replies 214 views
allyoops01allyoops01 Forumite
3 posts
Part of the Furniture Combo Breaker
Hi,looking for some advice re: funding a home extension.
I have inherited a property worth £150000 with a £15000 interest only mortgage outstanding.
I have had plans drawn up for an extension costing £45000
I currently live with my partner of 20 years in a property with a valuation of £130000 and an outstanding mortgage of £30000 the mortgage is in her name.
We do not have the funds available to finance the extension without first selling the property that we currently live in,and due to the nature of the extension we would be unable to live in the new property until the extension was finished.
What in your opinion would be the least expensive way to raise the necessary capital to fund the project.
I am 65 years old and work part time 
my partner is 58 and works full time.
We both have a good credit history.
Thanks for taking the time to read this,hope you have some positive input.

Replies

  • tonyh66tonyh66 Forumite
    1.7K posts
    Ninth Anniversary 1,000 Posts
    ✭✭✭
    Im a bit confused, you have inherited a house with an outstanding mortgage of £15k. Im guessing this is the original purchase price when you say it is an interest only mortgage. So you need to find £15k to pay off this mortgage and £45k for the extension. Best way to do it is to sell the house your in. this gives you approx £100k equity, rent somewhere while the extension is being done and move in... This will put you in the new house mortgage free
  • foxy-stoatfoxy-stoat Forumite
    6.5K posts
    Fifth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    I am with the rent for 6 months, sell your current property and use the £100,000 cash equity to build your extension and clear the outstanding debt on the property and live mortgage free.
  • DCFC79DCFC79 Forumite
    39.3K posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    Say you get the extension done whats the plan for the house you have inherited ?
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support