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  • FIRST POST
    • Mo77
    • By Mo77 7th Jul 18, 6:13 PM
    • 10Posts
    • 1Thanks
    Mo77
    Buy a house, improve it, remortgage it, improve it..
    • #1
    • 7th Jul 18, 6:13 PM
    Buy a house, improve it, remortgage it, improve it.. 7th Jul 18 at 6:13 PM
    Hi all,

    I'm after some help / advice please.

    Like my title says, I'm looking to buy a house with a 95% mortgage.

    My plan is to spend using savings/other loans to add an extention to the property adding at least 1 extra bedroom.

    The extention should add value to the property in excess of what it costs to complete.

    I would then hope to remortgage the property, again for 95%. As the property should have gone up in value, this should release some equity for me to complete a further extention.

    Does this sound doable? As long as the house increases in value with the work I'm completing it should be possible or am I missing anything?

    Thanks all
Page 1
    • Mo77
    • By Mo77 7th Jul 18, 6:14 PM
    • 10 Posts
    • 1 Thanks
    Mo77
    • #2
    • 7th Jul 18, 6:14 PM
    • #2
    • 7th Jul 18, 6:14 PM
    Subscribing
    • ACG
    • By ACG 7th Jul 18, 6:44 PM
    • 18,331 Posts
    • 9,999 Thanks
    ACG
    • #3
    • 7th Jul 18, 6:44 PM
    • #3
    • 7th Jul 18, 6:44 PM
    It is possible on the face of it, but I think your options are going to be very restricted.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • minimike2
    • By minimike2 7th Jul 18, 9:26 PM
    • 2,052 Posts
    • 1,540 Thanks
    minimike2
    • #4
    • 7th Jul 18, 9:26 PM
    • #4
    • 7th Jul 18, 9:26 PM
    If it was as simple as you make it sound, everyone would be doing it...
    • pramsay13
    • By pramsay13 7th Jul 18, 9:27 PM
    • 670 Posts
    • 1,087 Thanks
    pramsay13
    • #5
    • 7th Jul 18, 9:27 PM
    • #5
    • 7th Jul 18, 9:27 PM
    In theory yes, but there are a lot of ifs, buts, and maybes.
    Will you be doing the work yourself?
    Will you get planning permission for extension?
    Will the extension add the value you think it will?
    • sal_III
    • By sal_III 7th Jul 18, 10:49 PM
    • 780 Posts
    • 782 Thanks
    sal_III
    • #6
    • 7th Jul 18, 10:49 PM
    • #6
    • 7th Jul 18, 10:49 PM
    You are already limited in terms of Lenders by the 95% LTV, Then you will need their approval for the extension. Then if you use another loan to do the extension it will be very difficult to re-mortgage.

    Unless you are planning on doing the majority of the work yourself, it's going to be close to zero-sum game.
    • dimbo61
    • By dimbo61 7th Jul 18, 10:58 PM
    • 10,152 Posts
    • 5,494 Thanks
    dimbo61
    • #7
    • 7th Jul 18, 10:58 PM
    • #7
    • 7th Jul 18, 10:58 PM
    To put an extra bedroom you need the downstairs room/s as well.
    So 30/50,000 for that to start.
    You would need planning permission and plans drawn up.
    Keep saving
    • foxy-stoat
    • By foxy-stoat 9th Jul 18, 9:38 AM
    • 3,597 Posts
    • 2,030 Thanks
    foxy-stoat
    • #8
    • 9th Jul 18, 9:38 AM
    • #8
    • 9th Jul 18, 9:38 AM
    Your probably better off using the savings to put towards the deposit for a lower LTV - get the house you want rather than try and put an extension on. Maybe find one that you can go into the loft.
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