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Loft Extension or purchase additional BTL

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I'm Steven from London and have a dilemma I would like to share. I currently have a 1 bedroom BTL property in North London (N11), market value approx £270k. Mortgaged at 70%. I have approx £80k to invest and was thinking of doing a loft conversion to add an additional 2 bedrooms and bathroom. Cost of this should be in the region of £60k. 3 bed / 2 bath properties in the area can easily fetch £390k. My question would be:


Do I go ahead with this and then release further equity at LTV 70% giving me another £80k to invest once remortgaged?


Or do I use the initial £80k I have now and invest in an additional BTL?


Ideas and insights appreciated.


Many thanks,

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  • 1 month later...

Hi Steven

I had the same amount of equity to spend and I was also thinking of doing a loft extension. I decided to do both. I am doing a very standard loft extension which does only require stairs and boarding and invested the equity in an off plan BTL in Manchester.

I also think it is not a good idea to tie up all your equity in one property.

Hope this helps.


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Thanks Ianainsle and llse32 for your feedback. I've decided to put plans for the loft conversion on hold for now. My current plan is to invest in an HMO around Crewe, aiming for a 3 bed terrace around the £100-130k mark which should require approx. £50k inclusive of a rough £20k refurb costs. (Plan is to eventually acquire a mixed bag of HMO's and single lets). This falls in line with my strategy in replacing my income within a 5 year period. Loft conversion will go ahead but later on in the year when I can release a further £80k from one of my other BTL's.




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