Remortgaging my Property after Renovation

Have you recently renovated your property and are now considering remortgaging? Are you wondering if the value of your property has increased due to the improvements you have made? Remortgaging can be a great way to take advantage of the increased value of your property and secure a better mortgage deal. In this article, we will explore whether a property revalues after renovation and whether the improvements should be taken into account when remortgaging.

Understanding the Value of Property Renovations

Property renovations can have a significant impact on the value of a property. By making improvements such as upgrading the kitchen, bathroom, or adding an extension, you can increase the desirability and overall value of your property. However, it’s important to note that not all renovations will automatically result in a higher valuation.

According to a study conducted by the Royal Institution of Chartered Surveyors (RICS), some renovations are more likely to add value to a property than others. For example, loft conversions, kitchen upgrades, and adding an extra bedroom tend to have a positive impact on property value. On the other hand, extravagant landscaping or highly customized features may not necessarily increase the value in line with their cost.

Surveying and Valuing the Renovated Property

When it comes to remortgaging, lenders will typically require a professional surveyor to assess the value of the property. The surveyor will take into account the improvements made during the renovation process and compare it to similar properties in the area. They will consider factors such as the age and condition of the property, the quality of the renovations, and the current market conditions.

It’s worth mentioning that not all lenders will consider the full value of the renovations when assessing the property. Some lenders may only take a percentage of the increased value into account, while others may not take any improvements into consideration at all. It’s important to understand each lender’s criteria before deciding which one to go with.

The Benefits of Remortgaging

Remortgaging your property after renovation can have several benefits. Firstly, it can allow you to release equity from your property, which can be used for additional home improvements or other financial needs. Secondly, remortgaging can help you secure a better mortgage deal with potentially lower interest rates and monthly repayments. Lastly, it can give you the opportunity to consolidate any existing debts into a single mortgage payment.

Choosing the Right Mortgage Lender

When remortgaging your property after renovation, it’s crucial to choose the right mortgage lender. Different lenders have different criteria and policies when it comes to valuing renovated properties. It’s recommended to work with a mortgage broker who can help you navigate through the various lenders and find the best option for your specific situation.

Documentation and Proof of Renovations

To ensure that the improvements made during the renovation are taken into account by the surveyor and lender, it’s essential to keep proper documentation and proof of the renovations. This can include receipts, invoices, before and after photos, and any relevant building permits or planning permissions. Providing this evidence can help demonstrate the work that has been done and the value it has added to the property.

Conclusion

Remortgaging your property after renovation can be a smart financial move, especially if the improvements have increased its value. However, it’s important to understand that not all renovations will result in a higher valuation. Working with a mortgage broker and providing proper documentation can help ensure that the improvements are taken into account during the remortgaging process. Remember to compare lenders and their policies before making a decision, and always seek professional advice when dealing with property and mortgage matters.

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