Remortgaging After First-fix ??

[AmandineAlmiera]

Hello Mumsnetters,

I am currently planning major building/renovation works on my property involving a side extension and double-storey rear extension.
The plan is to fund all the structural, first-fix plumbing and electrics and everything else required to get the property air & water tight from savings then, remortgage to release some equity to fund the second-fix works to completion.
The build will add an extra bedroom, upstairs family bathroom (currently no bathroom upstairs), ensuite, utility and bigger open plan kitchen-diner. Hence, hoping this will increase the value to release some equity.

From my research so far, I understand the property must be in a liveable condition to be able to remortgage so we plan to maintain the old kitchen and bathroom until later and ensure the structure is air and water tight.

So I understand it is possible but has anyone actually done this before?

Thank you for reading.

You should be able to get a mortgage but the house value might be lower than you expect. It may even be lower than the current value because if the mortgage company had to reposess, then they will struggle to seel the property if it is mid renovation.
You might need to get a bridging loan or a home improvement loan or save up and then release the funds once the work is complete with a remortgage.

For example we were mid renovation on a house which would be worth a conservative £700,000 when completed and it was valued at £400,000 and they would only give us a mortgage because we have over 50% loan to value.

Do you not have enough equity to remortgage for second fix funds before starting ? If your Ltv is already too high and savings only enough for first fix your probably pushing the boat out too far financially. Particularly considering the housing market in general is not likley to tick up much for a while. If at all.