Can you help us decide what to do?

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!probably let the Scottish house out for holiday let until that time) then sell his house if possible.

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

Disregarding the obviously unlikely 3rd option have you got any other ideas that we may not have considered?? Or advice on which of our ideas would work the best?

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
Sounds good on paper but still needs juggling to get enough money freed up at the right time, if you know what I mean.

We await your ideas/advice/comments. Thanks in advance :rudolf:

feisty1

Wouldn't you be better waiting for an answer from the tenants re purchasing the property, surely this is what is going to drive you!

GalDriver

Yes, feisty1 it would but we're eager to consider our other options as we're not confident that they can afford to buy. So we may be a tad premature in asking for advice but this forum has such an abundance of knowledgable members we thought it may help us to galvanise our thoughts.

feisty1

[quote=GalDriver;16913853 But it is all speculation, such wasted energy! (in my opinion!) Anyhow, I am an adviser, based in scotland and know the scottish market, what area of the highlands are you hoping to purchase in?

feisty1

feisty1 wrote: »

[quote=GalDriver;16913853_But_it_is_all_speculation,_such_wasted_energy!_(in_my_opinion!)_Anyhow, I am an adviser, based in scotland and know the scottish market, what area of the highlands are you hoping to purchase in?

Sorry, I should make it clear I am not offering advice here, again it will be my opinion like everyone else who posts on here.

GalDriver

The place we've found is in Caithness and it's perfect for our plans (organising photographic holidays which will include a wildlife-attracting garden on our own land hopefully). As you say, going through the hypotheticals seems a waste of energy to someone not involved, to us it is a use for the energy that's making our heads whirr with ideas.

And thanks for the reassurance but it's ok, we didn't think you were touting for business here :-)

feisty1

I actually don't know what you want to know as you have stated yr options. In in this current market it is probably better doing a risk assessment and base yr decision on that and you really do need to wait on the tenants giving u their decision

GalDriver

I suppose we're wondering if we've got it right that those options would be ok. e.g. would there be any objections to us re-mortgaging my partners house to raise the deposit on the Scottish home? Are banks/building societies happy to allow a mortgage on a new home when one of us still has a mortgage on another propery? Are there any other options that we haven't considered?

We're really hoping to get a reply from the lettings agent this week but being Christmas week and the fact that we're the only people (apart from maybe the vendors) this keen to get things rolling we're not holding out much hope.

feisty1

It is possible to raise money on a mortgaged property to purchase another, however the decision will be based on people meeting criteria. It is best discussing yr options with an independent mortgage advisor.

Remember the buying system in Scotland is different to England & Wales

GalDriver

Thanks feisty, we've got the appointment for Tuesday morning with an advisor locally.

Now we're off to work our weekend shifts that will help us meet that criteria :-)