I am often contacted by clients who are frustrated at being unable to move house due to not being able to find what they need on the housing market. Or just generally feeling disillusioned with the housing market in general.
Often you can get the space you crave and need in the house you are already living in. It is not right for everyone but here are some useful tips.
- You can only borrow against the current value of the property.
- Don’t start ripping out kitchens and bathrooms before you have secured funding!
- Usual affordability rules will apply
- After the works you may be able to get a better deal if the property value has increased
- There will be Loan to Value (LTV) limits as to what you can borrow for home improvements
- Depending on your circumstances it might be appropriate for you to take a further advance or second charge with another lender
- Get some quotes for the building work first so you know how much you will need
- Speak to a local estate agent to see what the effect will be on your property value after the work.
It might not necessarily be the way forward for everyone but with housing supply being low it could well be a viable option for some.
