building loan to extend...

[nicko54]

Hi all,

I am looking at buying a rental property but have realised if I do this I will have no equity left to extend my current house.

Has anyone ever got a loan based on the future value of a house after an extension? are these feasible as an option?

Any thoughts?

[Nick G]

Yes, from ASB and BNZ have said they'll do it too. This was for a rental so not sure about PPOR.
1. Confirm with your bank. 2. Get the plans. 3. Get a valuation based on completion. 4. Get a fixed price quote from a LBP. 5. Take all that to the Bank. Make sure you include council, architect, valuation etc in your budget. You will need a valuation again at the end so you're adding a bit of cost but it'll get you there if the bank is on board. You want a really good builder or to allow cost overruns.