Any ideas on which way to work our finances?

GalDriver

Hi, we've got decisions to make but not sure which way to go or whether there are other ways we haven't even thought of yet!

Here's the situation. We've found a property in Scotland that we'd love to buy BUT my partner hasn't sold his house yet. He put it on the market just as things ground to a halt so he rents it out and we moved in together into a larger rented place (we wanted more space than his terraced house).

We've asked the letting agent to ask the tenants if they're interested in buying the house if we pay the legal fees and let them have it for a bit under current market value (we really want that house in Scotland!) We await their reply.

Meanwhile, in case they're not interested, we're thinking of other possible options....

1. We could re-mortgage his house to pay for the deposit on the Scottish House then take out a joint mortgage for it. Still sell his house when the market picks up. Keep his tenants in there and we stay where we are too until that time.

2. We could give up renting where we are and move into my partners house when the current tenancy ends, re-mortgage it for the deposit and take out a joint mortgage for the Scottish House until we're ready to move up there (the plan is to not move until we have an alternate income as we can't really commute to our current jobs in London from the Highlands!) then sell his house if possible.

3. Win the lottery and all this becomes hypothetical! hahaha.

Disregarding the unlikely 3rd option has anyone any comments on the viability of our ideas AND have you got any other ideas that we may not have considered??

If you want to know the figures, here goes.
Scottish House = £170,000
Equity in partner's house = £85-90,000
Our joint annual earnings = £80,000

We await your ideas/opinions. I've used this forum before for advice and found it invaluable so hoping this proves the same.

Thanks in advance.

Trollfever

Still sell his house when the market picks up.

When do you think this will happen?

GalDriver

Haven't a clue, have you? It's in a commuter area for London (less than an hour to London either by rail or road)

Kez100

This is your life . Whatever you do don't take financial risks that might pull you under.

poppysarah

You've put lottery as an option.
If you've got this far in your thinking then you're pretty far down the road of about to do something insane.
You really want this house. Another indicator.

GalDriver

poppysarah wrote: »

You've put lottery as an option.
If you've got this far in your thinking then you're pretty far down the road of about to do something insane.
You really want this house. Another indicator.

er.....the lottery option was a JOKE! which was why it was discounted in my original post....sorry I thought it was obvious, I will choose my words more carefully.

We haven't and will not jump into anything we can't finance properly, hence asking here for any suggestions from people who know more about these things than ourselves. We are not completely ignorant but do believe in doing our homework and using other, more knowledgeable brains to help that process.

Any helpful advice gratefully accepted.

poppysarah

How much have you got saved up? You say you earn loads and presumably the tenants are covering the mortgage on that one?

I'd say sell the house you're renting out and move on. Unless you want to be a landlord on a depreciating asset and have to deal with rent not covering the mortgage for whatever reason.

On your incomes you should have saved a shed load of cash.

CLAPTON

There are loads of nice houses in Scotland...

Get jobs/income in Scotland first (I'm assuming you intend living there)

then review the financial details depending upon income.