Would you remortgage

[Roastingtomhardy]

Has anyone remortgaged?
We live abroad and have a fairly small mortgage still owing-£120k, we predict after renovations, we can likely sell for £360 k in the future
We have a house with two bedrooms, we like to add 1 extra, sort our garden out-grass is ruined from the heat so possibly natural looking artificial grass and a small pool put in.
So we’d go from a two bed house with now awful gardens to a 3 bed with nice gardens and a pool, we’d also decorate the house, do the kitchen up a bit. We’ve been quoted around £40k for renovations.
Would you do it? We plan to live in the house for years to come
It all seems so scary

*We’d

No. The 40k will end up costing you 80k with the interest.

Pools tend to devalue houses if anything. Nice grass won't add on value either. Another bedroom sounds good though.

Any other way you could borrow / raise the funds needed?

That sounds like a very cheap quote. Where are you? I'd be amazed if that came in on budget. Artificial grass is even hotter than real grass so won't be pleasant if you're somewhere hot.

If it’s the heat that affected the grass, don’t get artificial as it’ll burn your feet!

40k doesn’t sound very much for that level of work. I think I’d go for 2 bedrooms plus nice garden/pool.

I wouldn't at the moment with the interest rates being so high. You'd end up paying silly interest on top. Could you take a year to save and assess again then?

We had a similar quandary and have decided not to extend / remortgage atm as it’s all too uncertain. We had planning permission and plans drawn up and everything !

@pinksquash13 Why would a pool devalue the house? It would be very much in demand where we are, I would’ve thought, surely having a pool is an asset to a potential buyer?

@Chocolateorange22 We can’t afford to save that up, but we could maybe wait a couple of years and see if things improve?

@Springadorable Its actually will leave us a fair bit over for decoration, worktops etc in the kitchen
We’re in Portugal

People are answering on the basis of UK issues.

Financially it makes sense to do it. You plan to stay for a while still. The renovations will enhance how you live. 3 bedrooms will always command a higher price than 2 and a pool in a hot country is a bonus.

As long as the new repayments are manageable with your income then I would.

I probably wouldn't. I'd rather get the current mortgage paid off or down much lower, but that's just me. Especially at the moment. All I know is, I definitely wouldn't get artificial grass!

@sleekcat Im not a fan either really, but we don’t have much option as the grass has dried up so much, it’s mainly mud/soil. I don’t fancy putting concrete on the whole lot
There are some more expensive versions that look more natural and don’t get hot etc

In Portugal I’d definitely add a pool. Do you need the third room? Could you do it in stages?

40k extra doesn’t seem that daunting but it depends how much disposable income you have. Could you get better rates for a loan? I’d compare options but if you can cover the payments then go for it.

Of course, we borrowed extra for an extension which has put double the cost as value on our house. Rates are high but not that high.

@TeenLifeMum We don’t *Need a third room as only have one child, but it would be nice to have a spare room for visitors and I’m just really thinking in terms of adding value, most people likely look for 3 bedrooms? Families at least I would think

@Ferngardens Did you pay that back each month/higher mortgage monthly or add it on to make a longer mortgage

I am an agent in Portugal. You will definitely get more money for your property with a pool, providing it is a decent size and has full planning approval (along with planning for the other changes you want to make). Without planning and licenses in place, you will actually decrease the value of your property if you make these changes.

@m00rfarm Why would it decrease in value please and where do I go for planning permission?

You would need to appoint an architect (and ideally someone who works closely with your local council). If you get the work approved and licensed correctly, then you will have the correct licences against the property. If you sell, and the plans lodged at the council do not match what you have built, then you will find it very difficult to sell the property, even at a reduced price. If you try to get retrospective planning, you could be fined, and there will be back council tax to pay. Which area are you in?

@m00rfarm Ah ok thank you, I hear so many people build without planning permission, why is this?
We’re in the Algarve

I have no idea why they do it - because when they want to sell, it all comes out and then they have issues selling their properties. I am based in the Algarve as well (Porches area). Basically, you will need to contact a reputable architect (not just a builder!) and get them to advise what you need to do before you start building. Depending on the council, it could take quite some time to get permission.

@m00rfarm Do you have to pay extra for planning permission? Unsure why we couldn’t add an extra bedroom on our own property
We’re in the Vale do lobo area

Would you just add an extra bedroom to your property in the UK without getting any sort of permission?

Go to this group and you will get some more help https://www.facebook.com/groups/472882839549373