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Bela

Should I Invest My Savings To Re-mortgage Or To Renovate My Flat

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:unsure:

I am a single mom with a 2 months old baby.

My flat was purcahsed in 2007 with Northen rock at 95%. The total value of my mortgage is 205K (30k on unsecure loan). I believe the flat today is worth 185K.

I have 60K on my savings and I would like to invest and renovate the flat adding an extension as the space is much needed with my new born baby.

But I am not sure if its best to invest my savings to Re-mortgage and leave the flat renovation for later or to go ahead with the renovation hoping it will increase the value of the flat and in the future try to re-mortgage?

If anyone could share some light on this I will be greatful.

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From the little you say, I assume it's a 1 bedroom flat. Your mortgage is 205k but you think the value of your flat is 185k. Not sure what you mean about the unsecured loan, is that somehting you took out to bridge the difference between the mortgage and the price or have you just rolled up other debts into it?

You have 60k in savings and want to know what to do with it. You need more space for the baby.

My advice would be to see what rent you could get for the flat, rent it out if it even nearly covers the mortgage and go rent a better place. You need the space more than you need the money.

Stick half the 60k in a savings bond, pick some very defensive shares for the other half. Look for companies that have a good p/e ratio and low gearing.

Don't bother "investing" in your property. It's already overvalued and will only get more so over the next few years. Don't gild the turd.

Sounds to me like you're in a bad place and stand to lose lots of money.

One more thing, go to moneysavingexpert.com for more huggy friendly advice, you won't get that here.

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Hi Bela and welcome to the forum.

This isn't really the sort of place where you'll get great advice about your situation. I would suggest you try moneysavingexpert dot com instead.

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:unsure:

I am a single mom with a 2 months old baby.

My flat was purcahsed in 2007 with Northen rock at 95%. The total value of my mortgage is 205K (30k on unsecure loan). I believe the flat today is worth 185K.

I have 60K on my savings and I would like to invest and renovate the flat adding an extension as the space is much needed with my new born baby.

But I am not sure if its best to invest my savings to Re-mortgage and leave the flat renovation for later or to go ahead with the renovation hoping it will increase the value of the flat and in the future try to re-mortgage?

If anyone could share some light on this I will be greatful.

How have you calculated the current value of the pad to 185k ?

Is this what you bought it for in 2007 ?

ie ((205-30=175)/95))x100=184 (yep been drinking , again) .

You have looked at latest selling prices at http://www.houseprices.co.uk to compare ?

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It's quite late, and i've probably missed something here, but

a - how do you extend a flat? presumably it is leasehold and someone else owns the building?

b - why not use the 60k or a large portion of it to clear down the debt and mortgage. Surely getting the debt paid off will reduce both the sum on which you pay interest, and the interest rate too.

I like the letting it out and renting idea, this can be quite successful in a housing market where it is hard to sell.

If you do want to sell ... Presumably at £185k for a flat, you live somewhere near or in London. Can you move further out where you can get a house for that?

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Bela

If your post isn't a wind up, I would seriously consider selling for whatever you can get, hopefully 185k, paying the balance of money owed from your savings, and renting a place that suits. Rent will cost you less than your mortgage payments, and you will have the flexibility to alleviate yourself of the expense in a reasonably short time should your circumstances change, e.g. Mr. Right turns up and you decide to set up together.

If your post is a wind up.....

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Guest P-Diddly
:unsure:

I am a single mom with a 2 months old baby.

My flat was purcahsed in 2007 with Northen rock at 95%. The total value of my mortgage is 205K (30k on unsecure loan). I believe the flat today is worth 185K.

I have 60K on my savings and I would like to invest and renovate the flat adding an extension as the space is much needed with my new born baby.

But I am not sure if its best to invest my savings to Re-mortgage and leave the flat renovation for later or to go ahead with the renovation hoping it will increase the value of the flat and in the future try to re-mortgage?

If anyone could share some light on this I will be greatful.

Get a really expensive handbag.

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3rd word of the thread title screamed troll. When ypu see the place where you and your child live as a home and not an investment you may get more sympathy.

Of course you would get a NR together mortgage if you had £60k sloshing around in your savings wouldnt you :blink:

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Why are you a single mother? Was it a one night stand? You couldn't even hold it together for a year or two?

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