Mortgage increase for extension

[edition]

Hi,

We are wanting to do an extension on our current house and would need to borrow the majority additionally to our current mortgage.

At the moment we have roughly 71% L.T.V and the house is maybe worth 195k. The extension has a rough cost of 35k, meaning roughly 90% L.T.V. if based on pre extension price. Do they do it on pre or post extension?

Thanks in advance for any help, I will ring our provider up but with it being Sunday they are shut.

[Jasandjules]

My neighbour got his based upon the final value of the property but he was told they were basically being nice because his LTV would still be less than 75%. I suspect they would want pre-extension because extensions go wrong, over-budget etc...

[Ungarsee]

They'll base the value on that moment in time so if you need to release the funds before the work is done then pre. They may also ask for detailed costings so worth checking with your mortgage adviser whether this is likely to be required.

[edition]

Thanks for the reply. Yes I'm hoping the extension will add at worst the money we put into it so we could keep our L.T.V. figure that I'm happy with....

[Sarnie]

At the point they lend the money, they will asses the property as it stands at that point in time. What if they lent on the basis of the future value and then you didn't do the work?