Thanks Folks - good points about the LTV. I'd estimate it's about 65% now - and adding on the loan amount would put it to 85%, so there might be a bit of room. But again, as you say - putting savings into the CU keeps all options open for now.I wouldn't pay it off the mortgage, there is no guarantee they would fund the extension. What is your LTV at the moment and what would the extension bring your value to? The ideal obviously if you want to have the loan over a longer term is to increase the mortgage but that depends a lot on the value figures. At least by continuing to save with CU you are keeping your options open.
Don't know about these days but years ago a top up mortgage for a purpose like this had to be below 80% LTV with some banks, can't see them being even more generous now unless the extension bumps up the value sufficiently to bring the LTV including the new loan down again.
Hi,
I'm 1 year into a new mortgage of 270k for our family home. We're delighted with where we are living, and the house is a 1970's 3-bed semi, in a nice estate - crying out for upgrading.
We've priced an extension and would be looking at spending 70-80k, hopefully early 2017.
My question is how should I fund this.
That seems like a high cost for an extension considering the size of a 3 bed semi. What square footage extension are you looking at? I guess it is quite large?
Hi - it's right on the 40 sqm limit - downstairs only. Price goes up as there is a downstairs bathroom, kitchen, utility room and a bit of glass I guessThat seems like a high cost for an extension considering the size of a 3 bed semi. What square footage extension are you looking at? I guess it is quite large?
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