remortgage existing property or new mortgage

Gregm

The house next door has just come on the market, the house itself is in a poor condition and needs a lot of work. We have thought for quite a while that if it came on the market we would look at whether it's worth us investing in.

Our thoughts are to either just take a strip of land to give us the option to extend our house and then resell the property, or to demolish the house and merge the two plots giving us both space for extending and a larger garden.

Before we can do anything we obviously need to look at how to finance it. We have a Self Certificated mortgage as I am self employed with much of my sales and commissions income coming from the US. Even with the current house prices we have equity in our house, athough not enough to cover the new purchase and we have little in the way of savings.

How would we go about mortgaging the purchase, would we re-mortgage on our property, or would we need to have a separate mortgage.