Reinvesting and Renovating Your Current Residence Could Be Wisest Financial Move
In the current sluggish property market, where house prices are continuing to drop and a there is lack of buyers, it might be an ideal time to get a remortgage deal to finance renovation of your property to add value. Possibly you own a large and unused loft that might be adapted into another bedroom, or maybe there is room for an extension or conservatory, but absence of cash means your dreams have not yet become reality. Remortgaging your property might be the solution.
A Lack of Active Buyers: Maybe you are finding it difficult to locate a prospective buyer for your home. If one of the principal reasons for you deciding to sell was to add more space, perhaps because your family has grown, then renovating with a remortgage could be a viable option for you. Enlarging your family’s property could give you the space for a bigger kitchen, a new dining room or an extra bedroom, and eliminate the need for a move in the first place.
Statistics in a reputable UK home magazine suggested recently that in the UK, hundreds of thousands of homeowners opt to undertake a home improvement project each year. That just goes to show that you’re not the only one thinking about it.
The type of property you live in as well its location will determine what sort of renovation projects are feasible. Each project is different and the costs of the work and time taken to complete will vary wildly.
A general timeframe for a one storey extension to be finished, for example, is about 3 months, with an extra three to five weeks if the extension includes an extra storey.
Why Reinvest? Existing market conditions are gloomy to say the least; the quantity of purchasers actively looking for property is at a historic low, though it is growing gradually year on year. First time house hunters have yet to be tempted by the government’s stamp duty incentives and prices are decreasing in most parts of the country. For the majority of homeowners, remaining in their house is the only viable option.
A remortgage deal might unlock some of the equity you have accumulated in your property throughout the life of your current mortgage, enabling you to upgrade and add value to your investment. An additional bedroom or enlarged reception room in an extension can add value to the property, making it a much more enticing prospect for potential buyers.
An example might be if you converted the attic into a guest room, which could add significant value to the property, and open it up to new buyers. Extending the property so that there are additional rooms might mean the property is suddenly marketable to larger families rather than couples, for example.
Keep in mind that costs for building extensions or converting a room differ from builder to builder, so make sure you do your homework before agreeing to any prices. Ask friends and family for recommendations, and don’t be afraid to barter on the cost to save yourself some pennies.
In terms of remortgage deals, the same applies. Shop around the lenders to find a good deal, but act quickly, as the Bank of England will be hiking up interest rates in the coming months, so the interest rates on remortgage deals will be hiked up with it.
Timothy Frodsham writes for JustRemortgages.com one of the UK’s top sites for the latest remortgage rates and best remortgage deals.