Movin’ On Up? Or Going Underground? Remortgaging to Fund Loft and Basement Conversions.

 Remortgaging to fund a loft conversion?
A finished modern attic conversion

In pursuit of more living space, a guest bedroom, or to accommodate a growing family, many homeowners are remortgaging to fund loft conversions or basement conversions which suit their individual or personal needs. Developing their properties like this can turn “dead” space into functional space.

The cost of climbing the property ladder is so considerable, many people are opting to extend their home into the basement or loft, as moving to a bigger property is unfeasible.

The Independent obtained figures from Halifax Insurance that indicate other space generating options such as conservatories and porches have decreased in popularity, with the number of UK planning applications falling from 34,126 per year in 2012, to 33,170 in 2016.

This contrasts with the rise in basement applications which saw a 183 per cent rise in applications over the same period.
The number of planning applications for loft conversions also increased from 34, 822 in 2012 to 49,649 in 2016.

Can I Remortgage my Home for a Loft or Basement Conversion?

Yes! Provided that your home has the right level of equity and you can afford the repayments, you can release the equity from your property by increasing the borrowing on your mortgage; this can be a cheaper way of borrowing larger amounts of money for big conversion or extension projects.

You can calculate your equity by subtracting the value of your mortgage balance from the value of your property.

Calculating how much you can borrow can differ between lenders; Mortgage Advice Services will do the research for you, to provide the best products from a wide range of lenders to suit your needs.

Remortgaging to fund a basement conversion?
Fancy a tennis court in your basement? As seen on https://urbanistarchitecture.co.uk/portfolio-item/luxury-basement-extension-design/

How Much do Loft Conversions Cost?

Remortgaging to fund a loft conversion. Yes, but can You afford it?

This depends on the size and shape of your loft and roof structure, as well as your location and personal preferences.

For example, a basic loft conversion can start at around £15,000, whereas a loft conversion with an en-suite and a dormer window added into the slope of the roof could cost between £35,000-£45,000.

These figures can be considerably higher if you are located in the London area. Here at Mortgage Advice Services, we recommend that you obtain several quotes prior to starting work.

How Much do Basement Conversions Cost?

Again, this depends on the size of your basement and what work you would like to be done; make sure you shop around for alternative quotes to find the best deal on the market for your needs.

Thinking of remortgaging to fund a loft conversion?
Thinking of remortgaging to fund a BIG loft conversion?

Don’t Move – Improve!

If you are financially able to relocate, conversions can still be a more appropriate option if you simply require more space.

Investing in your existing property can reduce the stress and upheaval of moving to a different house entirely, whilst securing the extra space needed to fully enjoy your home environment.

Conversions can add value to your home, making it an attractive, viable alternative.

A survey by Nationwide found a loft conversion including a bedroom and bathroom can add 20% to the value of a three-bedroom, one-bathroom house, so also consider remortgaging after the conversion.

If your house has increased in value, your mortgage will be a smaller proportion of the value; consequently, a range of lower mortgage rates could be available to you.

Mortgage advice services recommends

Mortgage Advice Services recommends …

  • Consider…
    • is the loft/basement a useable space? For example, what is the internal height?
      will you need plumbing, if so,
    • will your existing plumbing need upgrading too?
  • Check…
    • is planning permission required?
    • if you need to inform your insurance company in case your cover is affected
  • Contingency…
    • add at least 10% to your budget to allow for unforeseen circumstances
  • Consideration…
    • let your neighbours know what is happening and when

Interested in remortgaging your home to fund a loft or basement conversion or extension? Call Mortgage Advice Services on 01332 257 087 for bespoke, friendly, impartial advice on the right remortgaging options for your circumstances and requirements.

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