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How to raise Finance/buyng property/assets (boring!)

(5 Posts)
GuinefortGrey Thu 08-Sep-16 10:59:47

My situation is as follows:

Income from pensions & property approx £55k pre tax per annum
DP's income: £25k pre tax

I own 3 properties (no mortgage) on the same premises (could not be sold separately as interconnected - a flat, a 3 bed-house and a hairdressers/shop) ) that are rented out. Had the lot valued about a year ago at approx £600k.

There is also our own home worth approx £700k with a £140 k mortgage.

We've seen a property we are interested in but not got ours on the market yet. It would be a massive lifestyle change, and I'd love to be able to keep our current home and rent it out, in case the new venture did not work out and we wanted to move back in the future. I think our house would make around £1500-1700 pm in rent.

Is there any way to raise finance on the assets I have that would make it possible to purchase a new property of £650k? I could find about 80-100k cash for a deposit and DP could probably get a small mortgage as our current one is in my name only.

I'd really appreciate any advice, I'm not financially minded at all and it all really hurts my head thinking about it! I don't have anyone I can ask irl, so if anyone can help I would be so grateful.

Obviously, if we need to sell our current home we will try but I just wondered if there is any other way? How do buy-to-let magnates manage it??smile

HandbagFan Thu 08-Sep-16 15:10:06

You'd be looking at taking out mortgages on the other properties - you can't just say you've got £X equity and get a loan based on that, you'll have to borrow against what you own already. The BTL should let you take out up to 75% LTV and possibly more on your personal residence although I'd be reluctant to do that when you have other options.

One to discuss with an IFA - tax implications, multiple finance deals etc make it complex.

Rockchick1984 Thu 08-Sep-16 19:22:55

Personally I would change your existing mortgage to a buy to let, and take a new mortgage on the property you want to buy.

ShortLass Fri 09-Sep-16 08:11:05

Speak to a mortgage broker. They will be able to go through the options with you.

I currently rent out a house and I was looking to buy something for myself. Broker was able to go through options such as remortgaging to release capital from existing property to raise deposit for new house. She gave me some good figures to work with. I would only need to pay her the fee if I went ahead. The fee was reasonable, although I decided not to do it in the end.

GuinefortGrey Mon 12-Sep-16 13:52:44

Thank you everyone, that's just the sort of advice I needed. Think I'd better find me a mortgage broker and see what is possible smile

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