Buying 2nd home for investment

[Dwellernf]

There maybe someone on here who can loosely advise. House next to us will be coming up for sale. It is a renovation project. It comes with a bit of land adjoining our land and we have been asking current owners for years if they would sell the land as they didn't use it. It is about an acre and we would put our horses on it. Their house and land is a mess. Half finished extension (been like it for years). Rotten caravans etc. They are up to eyes in debt and getting divorced. House will be sold. At a guess we think around 500-600k. Our current situation is complicated too. Brother owns house and I own land with a cottage on but it is still classed as one property as cottage is an annexe. It doesn't bother us. Very close and tight knit family. The property as a whole is worth just over 1.2 million. We have no mortgage or borrowing on the property. We would go in together to buy the house next door... do it up and either sell house without the land or keep it all and do holiday lets (very desirable location) BUT... although we own property with no mortgage we have no other money as such! Just our jobs with income. Myself, brother and sister in law all self employed and only my husband is employed. Average monthly income between us is around 10k a month. (5k per couple) How likely/sensible is it to borrow against our existing property to buy the other house? Hoping project would take 12 months and then either sell or rent. Obviously this is something we would get proper advise etc int but having never done anything like it before just wondering if it is actually a possibility?

If house prices dropped considerably then we would wait until they rise. It's unlikely they would fall to a point in which we would have to worry. When I say savings, I'm talking we don't have £££££. Between us we have a few k in the bank and plenty of assets (I have a new Discovery for instance) we could sell if got desperate. However, after looking at the property we would be able to have a reasonable idea of costs needed and would probably borrow the whole lot. If it looked like a huge money pit then we would walk away. Our idea of acceptable is finish the extension, decorate, carpet throughout and new kitchen/bathrooms. If selling after these would be cheap budget options as likely new owners would rip out and add their mark anyway. I do know they had a new heating system put in a couple years ago. TBH it's more the mess and clearance outside.

1 acre is NOT enough for one horse and definitely not horses. It will be useless as grazing in no time. Do you actuality have a horse and stables? All of this seems crazy to me.

We own the property that adjoins this property. We own just over 3 acres already, along with a lovely yard, 3 stables, tack room, feed room, solarium ( I know! A bit posh but it's a godsend!) and 2 horses. We regularly hunt (clean boot... no foxes) and my children are competing at BE100. I am a fully qualified BHS riding coach and working on my stage 4. I fully understand grazing concepts. However, according to BHS guidance 1 acre is a minimum for 1 horse. Luckily with the hopefully the purchase of this extra land, I will own near on 5 acres and the potential for a 3rd horse too. Thank you for your concern on equine welfare.

I think I'm beginning to see why the op has no money for the deposit.

😂😂😂Yep! Was going to add that this may have something to do with why we don't have any savings!! We do have a great life though and are never bored. Some of my friends have lots of savings etc but they drive the shittiest cars and never go out! Nothing against them, but it's all to do with life choices and what make us happy. I am sure most have you have seen the "Here is my summer Caribbean holiday eating my winter skiing getaway" (Horse eating a full hay net of hay!)

@Dwellernf We have 7 acres for 2 horses. Even then it gets poached at times. However I’m sure you know best.

It’s a gigantic risk , up to you all if you want to take the risk and do all that work.
Now the divorce and sale are happening could you make the neighbours a good offer for the land you want instead.? They may be open to that now.

It seems a big cost which is essentially for your horses. I was wondering why you had no savings when you’ve got 5k a month coming in and no mortgage, but of course yes, horses! Expensive hobby, but sounds like you all love it. At the end of the day if you all think you can afford it, go for it. As long as the cost of the repayments are do-able, as right now you don’t have any savings so where would the money come from to pay the mortgage on new property?

No need to be snippy. Your post made it sound like you were planning to put multiple horses on a single acre.

Re the plan, no harm in finding out a bit more and it will almost certainly be cheaper and easier to borrow against your existing house. But you need to make sure you’ve accounted for everything (extra stamp duty, contingencies, estate agent fees etc etc).

Of course any land gets poached over winter. Poaching is actually very beneficial to land. But 2 horses on 7 acres and you still poach? You either have some very shit land or you are not managing correctly if they have access to all 7 acres over winter? Other than gateways of course. I presume you are resting a significant amount and only letting them have a small area over winter? Ours only have a small paddock over winter plus stable and we rest the other for spring /summer. However ours are all natives and we don't want good grazing or we are battling lami and weight issues. I used to lecture in grassland management (equine) at a college and have a fair idea on how to look after land.

I was simply responding your snipy comment on if we actually own horse and know what we are doing! It was a rather large assumption of you.
Yes, we are planning on doing a lot of research. I have offered a fair price for just the land and fingers crossed they will take it. My brother and sil are more interested in the house as they already have a holiday let elsewhere and will add to their property.

Yep! Horses. I don't think I need to elaborate on that one!! But yes. It is our life and what we all love. It is a huge cost, buying the house too, but I've been trying to buy that land for years. Really frustrating as it's just gone to waste. They wouldn't even rent it to me, and they would sooner just let it get overgrown. It's landlocked too, and the only access is via the house it goes with or one of my paddocks. I would hate it if someone else got it!

If it means so much, go for it. I used to share a pony and they eventually moved to a lovely house with their own land and he loved it there (passed this year).

@Dwellernf Come and manage our land then please. With no rain and wet winters it can be very difficult and no, they don’t have access to it all. They are not stabled though.

If I was selling, I’d get a valuation for house and land and house without land. Around me, house with land would go for a premium. I assume the owners cannot get pp on the land.

??? Are you mixing me up with another poster. I haven’t posted previously on this thread.

You would need to remortgage the property you live in to release 25 percent deposit on new house and also enough to cover cost of renovation. If you think it will take 1 year allow up to 2 years because people always underestimate and there can be snags. Look at how much mortgage repayment would be on both properties then decide if you can afford it. Would neighbours sell land separately to their house?

Wouldn’t it be sensible to own one whole property with your DH rather than part own two with your DB?