Hi all,
I'm looking for some advice - we recently bought a project house that needs a lot of work - we had hoped to sell our 2 bed London flat to finance the work, but it hasn't sold. This isn't the end of the world as we can afford both mortgages comfortably.
However, we don't have enough savings to cover the work & my MIL has kindly offered us a loan. We can make decent repayments on this - but I'd like to explore options for repaying her more quickly if the opportunity arises.
When we bought our current property it was valued at £100k higher than what we paid, and my hope is that we will further increase the value by extending (also adding 2 bedrooms) and making much needed improvements. If we do this within our current mortgage term - would we be able to release equity when we come to remortgage?
Also caveating this with the fact that I am aware house prices are likely to fall etc. but we are not relying on being able to borrow more against the mortgage, it would just provide a means of paying off a lump sum.
Any advice appreciated.