House Valuation

[Myth]

I am wondering if anyone has been in this situation.

we are planning a 2 storey extension, we have enough to build the shell and knock through and I am hoping to take the rest out on my mortgage to complete the build.

If I get my house valued mid build, so extension was up but unfinished but rest of house in a good state would the extension be taken into account of the valuation in a positive way?

For example if my house is worth £300k now with an extension mid build would they value it at £320k?

 

[BUDFORCE]

Probably the opposite, most mortgage lenders won't like a half done extension.

Either try and mortgage it first to raise the capital, or take some other form of finance first, then once it's all done remortgage to pay that off.

 

[fastwunz]

Im a surveyor.

A house is valued based on its exact condition at the time of the visit.

Never under any circumstances is a house valued based on what it will possibly be like when finished.

So, in your case, if i were to turn up and be asked to value your property as oposed to a physical condition report, i would value it based on exactly what i saw there and then.

All the bank cares about is getting their money back should they need to disppose of the property were they to reposess it from you. For all they know, you could default on your mortgage and they would be left with a house with a half built extension that would take tens of thousands to fix.

So, my adivce is the sames as BUDFORCE.

Try as best as you can to get as much done as physically possible before getting the surveyor over. If he/she can see that the majority of the work is complete then the cost of finishing it will be fairly inconsequential against the additional value added.

A brick shell and no roof wouldnt help your cause.

Hope that helps.

 

[Myth]

Thanks both for your replies.. very helpful.

I did call the bank and they said the same as above.

They said it may have a positive result but depends on how far along it is. For example if the kitchen was half ripped out and the bathroom was in bits it would have a negative effect.

I should have been clearer as well, by shell I meant water tight (roof on), walls knocked through, plastered etc but no finishings, so just bare rooms.

 

[fastwunz]

Thanks both for your replies.. very helpful.

I did call the bank and they said the same as above.

They said it may have a positive result but depends on how far along it is. For example if the kitchen was half ripped out and the bathroom was in bits it would have a negative effect.

I should have been clearer as well, by shell I meant water tight (roof on), walls knocked through, plastered etc but no finishings, so just bare rooms.

One thing to bare in mind - the property MUST have a functioning bathroom and kitchen and functioning heating for it to be acceptable to most lenders at the time of inspection

 

[Psycho Sonny]

If I didn't have the cash up front before starting a project. I personally would never start it.

I've seen plenty of people rely on future income or future loans and let's just say the hole they dug just got deeper and deeper to the point they will likely never recover as the interest is so much. Had they just saved for longer or made it smaller it would have been much better for them.