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Re-Mortgaging and Moving Abroad....help!

Advice urgently needed! We have a house in East London, very close to the Olympic site which is currently rented out to the Council on a guaranteed rental scheme. They pay market rate rent and we have had absolutely no problems - it is an excellent service and the tenants are fine. We have rented our house for the past 2.5 years while we have been living in accommodation provided by our job in the country. The 3 year contract with the Council is due for renewal in December 06. In light of the Olympics, we think we should hang onto the house for another 3 or 6 years as are assuming the proximity to the Olympics will increase house prices in the area considerably? Everyone says we would be mad to sell now.

We will be moving to Greece next Spring and had initially thought we would rent accommodation there. However, we are now considering buying a cheap property in Greece and are looking into the feasibility of raising money by re-mortgaging our London property.We would envisage selling the London house in 3-6 years and paying the mortgage off.

Having spoken to a couple of advisors on the phone I gather we may have difficulties obtaining a mortgage if we are to be resident abroad and that lenders do not like Council rentals and long-term contracts.

I am unsure how to proceed. Any advice gratefully received. Thanks.

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    What is the current property value?
    What is the current mortgage amount(if there is one)?
    What do you need the new mortgage amount to be?
    What is the current rental income?
    Are you currently working in the UK?


    There may well be just a few options available but it will need a lot more information to see.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • gillaki
    gillaki Posts: 3 Newbie
    Hello,
    Current Value = £236,650
    Current Mortgage = £121.616
    (Plus a Further Advance of £18,913)
    Need £58,000 for new property (ideally plus £15,000 to do up house)
    Yes, we are both currently working in UK
    Thanks
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    Without looking at the extra £15,000 to do up the place you are looking at a re-mortgage of £198,529 or 83.89%

    For BTL this is do-able - you have not stated what the rental income figure is - this will be needed
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • gillaki
    gillaki Posts: 3 Newbie
    The current rental is £845 per month.
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