Capital Raising

Posted on 30 April 2012 by Mathew

Hi, we have a cottage that we live in and want to extend. We cannot re-mortgage as we only have £30000 equity in that and the cost of the work is extimated at £80000. My question is how best to raise the extra money? If i am on the deeds of my parents property (100% owned by them) then can i re-mortgage and raise the extra against that property?


If you are named on the Title Deeds of your parent's property it may be possible for you to raise the funds you require using that as security for the mortgage.  Your parents would also need to be party to any secured borrowing and the lender would need to be assured that there was no undue influence used to get them to agree.

Depending on the work that you want to do on your property and how much it would increase it's value by, you may be able to raise the money you need without resorting to your parents.  Either your existing lender will allow you to borrow more as the works progress and the value increases or they may release all the money subject to a final inspection once it is complete.  In this second scenario you would have to fund the work and this would usually be done by way of a bridging loan.  Whilst more expensive than a standard mortgage these do allow you to get the work done and if you have the refinance arranged beforehand then the costs can be limited.

I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers.  Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.


Answers provided in response to Ask the experts 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 necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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

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