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    • mr bogle
    • By mr bogle 6th Jan 18, 2:46 PM
    • 3Posts
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    mr bogle
    Mort adv-Rentout existing home, moving to small cabin to overpay on home mortgage?
    • #1
    • 6th Jan 18, 2:46 PM
    Mort adv-Rentout existing home, moving to small cabin to overpay on home mortgage? 6th Jan 18 at 2:46 PM
    Hi All

    It would be wonderful if someone could advise if this is possible/steer me in the right direction

    We are looking to pay off our help to buy equity loan, rent out our existing 3 bed property and move into a smaller cabin to allow us to overpay on the 3 bed mortgage.

    we used help to buy to get this property but since we moved I luckily got a new job and my salary has increased.
    Ideally, we would like to cover the 3 bed mortgage with rent, own the cabin and use our salaries to overpay on the 3 bed mortgage

    3 Bed Value – £298k (official valuation in July/Aug17)
    Cabin – £50k ish

    £179k remaining mortgage on 3 bed (21 years)
    £60k (20% help to buy Equity loan)
    £60k Approx. equity (possibly more if 3 bed value has risen)

    £1200-1300 – Approx. rent on the 3 bed in this street (as about 20 Similar town houses) we also have lots of exec offices in the area so option to rent to head office staff through their company (up to £1800)

    £65k Combined basic earnings, both employed full time for 10+ years

    1- Is this possible?
    2- Would we be able to rent out our existing property with a mortgage of 240k (Would this incur additional costs/Higher interest etc as assume would be a buy to let mortgage?)
    3- Would we be able to release 50- 60k to Buy the Cabin Property or
    4- Release 20k and have a 30k mortgage on the cabin for example

    or any other way this would be possible

    any guidance would be much appreciated

    thanks in advance
Page 1
    • G_M
    • By G_M 6th Jan 18, 2:51 PM
    • 42,753 Posts
    • 49,971 Thanks
    G_M
    • #2
    • 6th Jan 18, 2:51 PM
    • #2
    • 6th Jan 18, 2:51 PM
    **Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

    Topics covered:

    * Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new tenant protection (2015)

    * Deposits:
    payment, protection and return

    * Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

    * Rent increases: when & how can rent be increased?

    * Repossession: what if a LL's mortgage lender repossesses the property?

    * New landlords: advice, information & links

    * Letting agents: how should a landlord select or sack?
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