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new member needs advice
satinder_2
Posts: 2 Newbie
Hi everyone!
My dad had a property which he has given me as a gift for tax reasons.
The property is worth £130,000 and has no mortgage on it, and is rented out for £460 a month.
I am only 24 years old and have no experience of the property business but would like to go into it once I finish my masters at university.
I WOULD LIKE TO DO AS MUCH RESEARCH AS POSSIBLE IN THE NEXT FEW MONTHS BEFORE I GO INTO IT.
As the property is in my name I would like to know if I would be able to get -
1. Get a mortgage even though I can not prove my income?
My plan is to remortgage the house and buy another property for £70,000 then put that on rent with a £20,000 deposit.
Or remortgage the house for £70,000 then my brother wants to take out a loan for £100,000 and we plan on buying 3 houses to let.
We plan on doing it like this -
Remortgage the current house for £70,000 and with the loan put down a payment of £30,000 this way the rent should cover the mortgage of £70,000. Then remortgage that house, again for £70,000 then putting another loan payment down of £30,000 and so on.
Hopefully the rent should cover the mortgage for all houses and we only need to pay for the loan each month.
Can this be done?
or sell the house for £130,000 then take out a mortgage buy a property for £60,000 then put down a £40,000 deposit that way the rent will be covered, then reportage that and buy another property for £70,000 and put down another deposit of £40,000 and so on. This way I can buy three properties.
Can I do this even though I can not prove my income, if I do it this way will I be able to get a mortgage as I can not put my house up for security as I would have sold it?
As I say just doing research at the moment!
My dad had a property which he has given me as a gift for tax reasons.
The property is worth £130,000 and has no mortgage on it, and is rented out for £460 a month.
I am only 24 years old and have no experience of the property business but would like to go into it once I finish my masters at university.
I WOULD LIKE TO DO AS MUCH RESEARCH AS POSSIBLE IN THE NEXT FEW MONTHS BEFORE I GO INTO IT.
As the property is in my name I would like to know if I would be able to get -
1. Get a mortgage even though I can not prove my income?
My plan is to remortgage the house and buy another property for £70,000 then put that on rent with a £20,000 deposit.
Or remortgage the house for £70,000 then my brother wants to take out a loan for £100,000 and we plan on buying 3 houses to let.
We plan on doing it like this -
Remortgage the current house for £70,000 and with the loan put down a payment of £30,000 this way the rent should cover the mortgage of £70,000. Then remortgage that house, again for £70,000 then putting another loan payment down of £30,000 and so on.
Hopefully the rent should cover the mortgage for all houses and we only need to pay for the loan each month.
Can this be done?
or sell the house for £130,000 then take out a mortgage buy a property for £60,000 then put down a £40,000 deposit that way the rent will be covered, then reportage that and buy another property for £70,000 and put down another deposit of £40,000 and so on. This way I can buy three properties.
Can I do this even though I can not prove my income, if I do it this way will I be able to get a mortgage as I can not put my house up for security as I would have sold it?
As I say just doing research at the moment!
0
Comments
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yes. its termed a self cert mortgage"enough is a feast"...old Buddist proverb0
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Be careful about relying on rent to cover mortgage payments. If the home were vacant for two months running would you still be ok? I know some estage agents can guarantee you rental income in the event of being unable to find tenants but they do charge extra for this.The reason people don't move right down inside the carriage is that there's nothing to hold onto when you're in the middle.0
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You mention the property was gifted to you for tax reasons. Remember that IT may be payable if your father dies within 7 years - you can insure against this but at least if you make allowances for an extra loan to pay it off you should be OK. Good luck - it all sounds exciting!Charles J0
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why get a £100k loan???
get a self cert Buy to let mortgage (you cant get a residential one) on Interest only payments (tax deductible). You'll get around £70K on the figures you quote roughly.
Invest this as a deposit on 2 or 3 more houses with more BTL self cert mortgages.
This however will not create much income as most of the rent will go towards paying morgage interest and maintenace/void periods etc.Anything I write is based on my opinion only. Before acting upon any advice from anyone on a forum further professional advice should be sought.0
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