I bought a house 10 years ago which I let out but the tenants are leaving soon and I now want to convert it into two flats. I reckon the work will cost around £30,000. I only have £20,000 left to pay on the mortgage so want to remortgage to £50,000. Can I do this on my buy-to-let mortgage or will I have to take out a separate mortgage for the building work?
Firstly, I recommend you talk to your existing lender about you plans to see what they say. If they won’t agree to lend you should consider refinancing onto either a refurbishment or bridging loan. This type of short term finance is more expensive but will allow you to carry out the work. When the conversion is complete, if you intend to keep the flats, you can then refinance again onto a mortgage. It can get quite complicated, so do give us a call on 0345 345 6788 if you need help.
1st January 0001