Extending mortgage for an extension

May I ask this question.

We are hoping to extend our house hopefully next year. We need to knock an already existing extension as its a mess and just start again. However, a recent valuation showed our home at 180K (which we did not agree with).

We would have equity of about €52k which would bring us to €162K but if we should require more would the bank or building society or do they now take into consideration the added value an extension would be and allow us to go borrow extra funds? I am not sure we would want to go to 100% mortgages or are they fading out.

Thanks

hoping

€180k seems very little. What kind of property is it and where is it based?

J

It might be worth applying. Approval also depends on personal circumstances - earnings, potential earnings, profession, dependents etc

Do you have any other property or land that could be used as additional security?

Even if the paperwork adds up, make sure you work out your figures so you're not overstretching yourselves financially. When doing your figures factor in some funds for unforeseen future events which may arise e.g addition to family etc

Talk to a broker (or two) and see what they say?

Thank you for taking the time to reply.

There won't be any more additions to the family I can assure you of that. It took us 8 years to get one child and we count ourselves blessed.

I'm sorry if my post was insensitive. I was really aware after I had posted it that there might not be any or more children. It is one of the things taken into consideration when underwriting mortgage applications and I'll have to come up with another example when replying to posts!

Best of luck with your extension!

Hi,

If you are borrowing money for the extension the bank will base their percentage on the value of your house when the building work in finished e.g. house work €180k now and €250k when the building is finished - you borrow €150k total = 60% Loan to Value,

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