Re-value house to get more equity out of it?

[NorthWestPerm2Contr]

coming up to re-mortgage time for house that I bought nearly 2 years ago. Is it worth me getting a new valuation for it so I can a) extract some equity and b) so I can improve my LTV?

We have spent over 20k in renovations + house will have increased a little.

Anybody done this recently?

[eek]

coming up to re-mortgage time for house that I bought nearly 2 years ago. Is it worth me getting a new valuation for it so I can a) extract some equity and b) so I can improve my LTV?

We have spent over 20k in renovations + house will have increased a little.

Anybody done this recently?

Well a remortgage will be based on current value so LTV will change automatically. Why would you want to pull equity out?

[NorthWestPerm2Contr]

Well a remortgage will be based on current value so LTV will change automatically. Why would you want to pull equity out?

to buy a BTL and a tiny amount of it to go towards a newer car..... I see what you are saying about re-mortgage but if I pay for a valuation won't that house could be worth a lot more? Or am I talking nonsense here.....

[northernladuk]

I think you need to think carefully about releasing equity in your house. Granted a mortgage is one of the cheapest ways of borrowing money you need to consider when you will end up paying your mortgage off. Might not be too much of an issue as your quite young but you don't really want to be still paying your mortgage in your mid to late 50's or beyond. When the kids grow up and start Uni you want them and yourself to be comfortable and no mortgage will certainly help.

You may also want to upsize at some point in the future. If you have very little equity in the house saving the deposit for the upsize could be very difficult to do.

Don't forget the fact you don't know where interest rates are going to be in 10 years time and it's likely there are going to be a number of house price booms and crashes over your life so will be very uncomfortable and inconvenient being caught with a high interest rate and negative equity.

Not saying don't. Just consider it very carefully. IMO sort your home out and find a different way to finance your luxuries.

[techno]

Anecdotes from friends and family over the last few years is you have to fight tooth & nail to come out and take account of any improvements you've done. Seems they simply look at house sales in your area and give you the average

[eek]

to buy a BTL and a tiny amount of it to go towards a newer car..... I see what you are saying about re-mortgage but if I pay for a valuation won't that house could be worth a lot more? Or am I talking nonsense here.....

Very little apart from physical extensions increase the value of a house, most of the time all they do is increase the house's sellability....

The car is a red herring as well. What you really want is to extend the mortgage as you buy that btl as that would clearly show the purpose and allow you to offset the interest on BTL deposit part the re-mortgage alongside the interest on the BTL mortgage...

[Halo Jones]

Very little apart from physical extensions increase the value of a house, most of the time all they do is increase the house's sellability....

+1
It’s the internal GFA (gross floor area) that drives house values these days.

I had a surveyor over last week for the same reason, he was sent by the mortgage company, his cost is part of the mortgage fee, even if I had had an independent valuation done, they would still send out the valuer.

[NorthWestPerm2Contr]

Very little apart from physical extensions increase the value of a house, most of the time all they do is increase the house's sellability....

The car is a red herring as well. What you really want is to extend the mortgage as you buy that btl as that would clearly show the purpose and allow you to offset the interest on BTL deposit part the re-mortgage alongside the interest on the BTL mortgage...

don't understand that bit.

[NorthWestPerm2Contr]

+1
It’s the internal GFA (gross floor area) that drives house values these days.

I had a surveyor over last week for the same reason, he was sent by the mortgage company, his cost is part of the mortgage fee, even if I had had an independent valuation done, they would still send out the valuer.

Thanks both for this.

[eek]

don't understand that bit.

You can offset the interest on a BTL property against the income received. This can be up to the total value of the property when you buy it.

Hence BTL costs £100,000. You get a £75k BTL mortgage and increase you current mortgage by £25k (to £150k) to fund the deposit.

So against the income from the BTL property you can offset the interest on the £75k btl mortgage and 1/6th of the interest on your current mortgage....