Mortgages & renovations question

[richatnort]

Evening all, hopefully should be a simple question but I'm struggling to get my head around it. I'm wanting to put an extension on my property and my mortgage is up for renewal next year. Some figures:
Mortgage is at 160k
House is roughly worth 240 without extension
A house sold up the road with a pretty poor single story extension with same amount of bedrooms for 280 so I reckon mine would be worth 290/300 max after the extension is complete

I can get a loan from my parents To do an extension for around 50k as a sort of temp loan. Once the extension is complete I'll re-mortage with a value of 290 due to houses nearby selling for similar. Can I take the 50k back out my mortgage to pay my parents back but have the house value at 290 so I still have a fairly low ltv.

So my mortgage would be 210k with 80k in equity in the house with the value being 290k.

Would I be able to do this ok? Sorry if this is confusing I hope I got my point across haha!

[kiethton]

I’ve done similar, although it was my credit card and not my parents. Remortgage was arranged by Sarnie, give time a message and sure he’ll be far better-placed to advise.

[Sarnie]

richatnort said:

Evening all, hopefully should be a simple question but I'm struggling to get my head around it. I'm wanting to put an extension on my property and my mortgage is up for renewal next year. Some figures:
Mortgage is at 160k
House is roughly worth 240 without extension
A house sold up the road with a pretty poor single story extension with same amount of bedrooms for 280 so I reckon mine would be worth 290/300 max after the extension is complete

I can get a loan from my parents To do an extension for around 50k as a sort of temp loan. Once the extension is complete I'll re-mortage with a value of 290 due to houses nearby selling for similar. Can I take the 50k back out my mortgage to pay my parents back but have the house value at 290 so I still have a fairly low ltv.

So my mortgage would be 210k with 80k in equity in the house with the value being 290k.

Would I be able to do this ok? Sorry if this is confusing I hope I got my point across haha!

This is all possible...........you just need to be confident in the valuation.......also, the remortgage would be a debt consolidation remortgage, which some lenders can be difficult over.......

[richatnort]

Sarnie said:

This is all possible...........you just need to be confident in the valuation.......also, the remortgage would be a debt consolidation remortgage, which some lenders can be difficult over.......

Ahhhh ok that's good to know! I think i'm fairly confident with the valuation as about 5 houses have sold on my street this year all from complete gutters to finished houses with extension on and all with same number of bedrooms / location is becoming more popular with first timers / people moving into a bigger second home types. Houses are also selling within 3 weeks of being up at the moment which is always positive.

Are there anything I need to consider when it comes to lenders being difficult? I have a dependant now & a wife who's on matt leave and going back 4 days a week.

[JulianPH]

richatnort said:

Sarnie said:

This is all possible...........you just need to be confident in the valuation.......also, the remortgage would be a debt consolidation remortgage, which some lenders can be difficult over.......

Ahhhh ok that's good to know! I think i'm fairly confident with the valuation as about 5 houses have sold on my street this year all from complete gutters to finished houses with extension on and all with same number of bedrooms / location is becoming more popular with first timers / people moving into a bigger second home types. Houses are also selling within 3 weeks of being up at the moment which is always positive.

Are there anything I need to consider when it comes to lenders being difficult? I have a dependant now & a wife who's on matt leave and going back 4 days a week.

If I were you I would just hand the whole thing over to Sarnie and let him care of everything for you.

[MOBB]

^ this

[Sarnie]

richatnort said:

I have a dependant now & a wife who's on matt leave and going back 4 days a week.

Yes, those will be further complications for sure depending on the full circumstances............Eg return to work, dates, salary, childcare costs etc etc....