A thread for opinions of the forum only really, but a subject of which i have great interest in so thought i would see if anybody here had an opinion.
Now, the usual method of buying a house, with the aim to knock it down and replace it, would be to either;
- Apply for permissionbefore purchase and therefore fund the purchase with a development loan or self build mortgage.
- Assuming existing structure is habitable, fund with a regular mortgage, then apply for permission and then re-mortgage with a self build/dev loan once approved.
Both of these routes are fairly expensive and potentially faffy in comparison with a standard mortgage product, the first route presenting more financial risk than the 2nd.
I wonder what the mortgage company would say if you simply funded with a regular product, then....knocked it down anyway? (assuming you have funds for the replacement build). You then go on to re-mortgage to another regular product once the house is replaced.
The way i see it, neither company needs to even know about the rebuild? How much trouble are you potentially opening themselves up to by doing this i wonder? What would they do if they did find out mid build? What would they say if something arose and the house didnt match the property which was there when they valued whatsoever.
Crazy plan or good plan?
Now, the usual method of buying a house, with the aim to knock it down and replace it, would be to either;
- Apply for permissionbefore purchase and therefore fund the purchase with a development loan or self build mortgage.
- Assuming existing structure is habitable, fund with a regular mortgage, then apply for permission and then re-mortgage with a self build/dev loan once approved.
Both of these routes are fairly expensive and potentially faffy in comparison with a standard mortgage product, the first route presenting more financial risk than the 2nd.
I wonder what the mortgage company would say if you simply funded with a regular product, then....knocked it down anyway? (assuming you have funds for the replacement build). You then go on to re-mortgage to another regular product once the house is replaced.
The way i see it, neither company needs to even know about the rebuild? How much trouble are you potentially opening themselves up to by doing this i wonder? What would they do if they did find out mid build? What would they say if something arose and the house didnt match the property which was there when they valued whatsoever.
Crazy plan or good plan?
