L
Lazybones
Guest
Hi All,
Looking for your help please in terms of the best course of action to take - that will give the most economic way to do waht I want to do:
Current Situation:
I have a detached house - my main residence, with 2 years remaining on the Mortgage with BOI - I currently owe them circa 13,000 Euro on the existing mortgage. Which I realise is a lucky position to be in.
Present Market Value of the house - allowing for the poor maket conditions would be circa 350,000 Euro (I hopefully am being conservative with this figure).
What I want to do:
My new wife and I wish to build a new house - on much smaller scale and plan to rent my exisiting house.
We will be building this new house by direct labour,
We have secured a site from my parents - so there will be no site cost (apart fom legal fees to transfer the site).
Question:
I am trying to work out the best way to finance the construction of the new house.
My current thinking is to use my current house as an Asset and to try and get a new mortage on this asset (based on LTV rates of less than 50%) and to use this to construct the new house.
The new house will be a modest one and construction costs are estimated to be 150,000 Euro.
What are people's opinions on my methodology outlined above? Does it make sense? Is it the most economic way to finance the new construction?
What are the best LTV rates on the market currently?
Thanks so much for any help / advice given.
Looking for your help please in terms of the best course of action to take - that will give the most economic way to do waht I want to do:
Current Situation:
I have a detached house - my main residence, with 2 years remaining on the Mortgage with BOI - I currently owe them circa 13,000 Euro on the existing mortgage. Which I realise is a lucky position to be in.
Present Market Value of the house - allowing for the poor maket conditions would be circa 350,000 Euro (I hopefully am being conservative with this figure).
What I want to do:
My new wife and I wish to build a new house - on much smaller scale and plan to rent my exisiting house.
We will be building this new house by direct labour,
We have secured a site from my parents - so there will be no site cost (apart fom legal fees to transfer the site).
Question:
I am trying to work out the best way to finance the construction of the new house.
My current thinking is to use my current house as an Asset and to try and get a new mortage on this asset (based on LTV rates of less than 50%) and to use this to construct the new house.
The new house will be a modest one and construction costs are estimated to be 150,000 Euro.
What are people's opinions on my methodology outlined above? Does it make sense? Is it the most economic way to finance the new construction?
What are the best LTV rates on the market currently?
Thanks so much for any help / advice given.