Investment

FTBLondon_2

Hi All, I have just purchased a small maisonette in North London and I am due to complete in the second week in January. This was originally advertised as a 'leasehold property' with 80 years left, and I managed to agreed a price of under £110,000 however I spoke to the management company and have been told that I am a member of the freehold. I found out when these were built originally, the owners brought up the freehold, so I will just need to pay basic fee's to extend the lease as I am already a 'member of the freehold' is this correct????

I have a two year fixed rate mortgage and have put down a 15% deposit, this property need some work (new kitchen,bathroom,decorating), however one of these sold for £124,000 and they only difference was the other property had central heating and mine just has the economy 7 heaters. Most of my family are in the building trade so they will be fitting everything for free, I will just have to supply the kitchen,bathroom etc. So over the next year I will be restoring this property, and once I come to the end of my mortgage I would like to sell this property. However I am a bit confused how the sums would work out, if i sold this property for £125,000, (roughly £15,000 profit), made two years of mortgage repayments, and with my initial deposit. I know I would have to pay the solicitors fee and stuff about 3 grand, but how would I go about getting a new mortgage, on my next property, with the sale would this cancel out the original mortgage?? Sorry if these are basic questions, I'm new to the property market!!!

marcg

Not too sure what your last sentence means.

So you have a 93k mortgage and will spend about £15k to get the house in shape. This will take about three months. Then you will live there or rent it out (don't forget to get permission to let from mortgage co) so your mortgage costs will presumably be ignored from the calculations.

So total costs after renovation = £110k + legal fees etc + £15k + 3 months mortgage payments + fees to sell

Maybe £132k?

So you sell in a few years at more than £132k, pay off your £93k mortgage and use the difference between the new sale price and £93k as deposit on your next place.