Getting a new valuation for mortgage purposes after extending

(4 Posts)
Madblondedog Fri 22-Jan-16 09:11:12

I'm not 100% sure I'm wording this correctly but I am going to try. I know after extending/developing and therefore increasing the value of a property you can have it valued again as obviously the LTV has changed. I have a few questions:

- What benefit would there be in doing this?
- We're on a fixed 4 year rate anyway, is it worth it?
- If it is worth it, how do we do it?

Thank you

thatstoast Fri 22-Jan-16 09:16:27

It would only be worth it if you remortgage. If you're happy with your fix or penalties mean it's not worth remortgaging there's no point atm. When you remortgage in 4 years the mortgage company will arrange it.

wowfudge Fri 22-Jan-16 09:16:37

It depends what the terms of your current deal are to a certain extent - for example if you were to remortgage is there a redemption penalty for ending the current mortgage? Even if there is, is there a deal around which would give you a better interest rate and cancel out the effects of any penalty.

Madblondedog Fri 22-Jan-16 09:23:10

Our mortgage is just over 50% of the original cost of the property (bought in October). So it sounds like we'd be best off waiting and remortgaging at the end of the fixed term?!

We can easily cover the mortgage so that's not an issue, its more its something I heard you can do but had no idea why/if there were benefits.

Thank you for clarifying

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