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brndalux
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# Posted: 20 Oct 2021 07:14pm
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We are coming to the end of our mortgage in September and are in a position, given the increase in the value of our property, we have approximately £100k in equity.
We want to release some of this do build either a 1 or 2 storey extension when we remortgage. However, if we did this, which would add value to our property, our mortgage would still be based on the valuation pre-improvements.
How does it work with regards to the valuation of the house after these improvements? Can you get a valuation on what the property would be worth after the improvements for our remortgage or would we just have to stick with the pre-improvements valuation until we come to remortgage again?
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Brettny
Member
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# Posted: 21 Oct 2021 05:35am
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Are you doing this primarily to ad value?
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ICC
Member
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# Posted: 21 Oct 2021 09:00am
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The valuation should be based on what you have TODAY, not on what you MIGHT add in the future.
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redneckpaul
Member
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# Posted: 21 Oct 2021 04:26pm
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Just my opinion.....you got your mortgage paid off, don`t go back into debt!!
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gcrank1
Member
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# Posted: 21 Oct 2021 05:12pm
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You can bat this around on all the fora ya want, but really have to be talking the banker/mortgage companies in your specific area. Any of our thoughts/speculations are worth just what you are paying for them.
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brndalux
Member
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# Posted: 22 Oct 2021 05:42pm
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@Brettny yes,
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spencerin
Member
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# Posted: 25 Oct 2021 09:02pm - Edited by: spencerin
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For major construction/renovation, lenders do in fact lend based on the property's estimated/projected/forecasted value, after construction/renovation is complete. It wouldn't surprise me if your lender decided you had enough equity in your property as-is and thus didn't concern itself with a future valuation when talking to you about the project. As far as establishing an official, formal post-renovation value, the lender should be completing an appraisal. Are they not doing this? I noticed you might be in the UK. The UK process could be different from the US process.
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