How can I raise capital to cover our new build costs?

Posted on 9 February 2008

We have planning permission to pull our house down and build 3 instead. Can I raise a mortgage on the existing house to fund the development (we have no mortgage at present)? If so, what % of the existing house value could I raise? 

Unfortunately a normal mortgage would not suit you for this, as any property with a mortgage secured against it has to remain in tact, in case the lender needs to repossess it.  You may be able to get a mortgage on the remaining land available.

Contact www.buildstore.co.uk as they have access to self-build and development mortgages. 

Category: Raising capital out of property

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question