We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
ASSET Rich, cash poor. How best to buy?
Poorlytum
Posts: 1 Newbie
Hi, i wonder if anyone could help.
I am owner of two properties. A + B
A is my residential address. Repayment Mortgage £66K value £160K. On a
lifetime tracker of .89% above BOE base rate.
B is rented property. Interest only mortgage (Abbey standard variable)
£36K value £120K. Rental income £370pcm.
Value of property when rental started (2002) £60K
I need to move but really would only wish to increase mortgage A by
£40K (would not be able to afford much more without worry).
I have seen a property value £260K. What would be the best way of using
assets to acheive buying this property?
I had considered selling B but it is a good house in a decent area and
will not depreciate in value
Any advice greatly appreciated
Also, is there any way you can sell a property with excellent long term tenant intact?
I am owner of two properties. A + B
A is my residential address. Repayment Mortgage £66K value £160K. On a
lifetime tracker of .89% above BOE base rate.
B is rented property. Interest only mortgage (Abbey standard variable)
£36K value £120K. Rental income £370pcm.
Value of property when rental started (2002) £60K
I need to move but really would only wish to increase mortgage A by
£40K (would not be able to afford much more without worry).
I have seen a property value £260K. What would be the best way of using
assets to acheive buying this property?
I had considered selling B but it is a good house in a decent area and
will not depreciate in value
Any advice greatly appreciated
Also, is there any way you can sell a property with excellent long term tenant intact?
0
Comments
-
Hi, i wonder if anyone could help.
I am owner of two properties. A + B
A is my residential address. Repayment Mortgage £66K value £160K. On a
lifetime tracker of .89% above BOE base rate.
B is rented property. Interest only mortgage (Abbey standard variable)
£36K value £120K. Rental income £370pcm.
Value of property when rental started (2002) £60K
I need to move but really would only wish to increase mortgage A by
£40K (would not be able to afford much more without worry).
I have seen a property value £260K. What would be the best way of using
assets to acheive buying this property?
I had considered selling B but it is a good house in a decent area and
will not depreciate in value
Any advice greatly appreciated
Also, is there any way you can sell a property with excellent long term tenant intact?
You will need to see a good 'whole of market ' mortgage broker.
As for selling the property with the tenant intact - £120k property with £370 pcm rental income - not a good yield at all. Either the rent is too low or you have overvalued the property.
I understand that you only have a £36k mortgage - so it makes sense for you - but not for any prospective buyers at those figures.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.5K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.4K Work, Benefits & Business
- 604.2K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards