approaching existing Lender (santander) for self build finance

[Rob Wisbech]

hi

my house is valued at 800k with 100k mortgage (santander) . Plan to build in my large garden, then sell existing house and live in the new build.

 

Would large lenders consider this or does it need a specialist broker?

 

thanks.

 

Rob.

[SteamyTea]

I don't think now is a good time to be asking lenders for a loan.

They are running to the hills ATM.

[PeterW]

Why not just remortgage the current house and release the funds based on affordability, then do the mortgage switch / move when you finish the new build ..?

 

You'll need to tell them (Santander) at some point that you’ve annexed off part of the garden as it could affect the value and the LTV but I expect their bigger issue will be affordability on the extended loan facility first.

[Rob Wisbech]

thanks Peter -hadnt thought of that option .

[Moonshine]

22 minutes ago, Rob Wisbech said:

thanks Peter -hadnt thought of that option .

 

its what we did, we split the title of the existing house to create to separate plots of land. We re-mortgaged on the now reduced plot of land of the existing house to release funds to build. Also you have the option available to get a self build mortgage on the plot of land you have a separate title for.

 

Have you got planning permission yet as this will be your first hurdle before the finance side.

[Rob Wisbech]

i havent applied for planning permission yet as i wanted to get a feel for how Santander would view it.

 

also i cant see how you can split the the title of the existing house  without first getting the lenders permission ?

[Moonshine]

38 minutes ago, Rob Wisbech said:

i havent applied for planning permission yet as i wanted to get a feel for how Santander would view it.

 

also i cant see how you can split the the title of the existing house  without first getting the lenders permission ?

 

You split the title as you remortgage.

 

You are long way off this part of the process as you havent got planning yet.