Second home mortgage versus Buy to Let

ohwattagosiam

Thrugelmir wrote: »

For clarification are you proposing to buy the property at market value or for the value of the outstanding mortgage debt.

Value of the outstanding debt, plus a few thousand more to clear his other, much smaller debts, and to put a new heating system in.

VIGILANT22

http://www.fsa.gov.uk/pubs/cp/cp09_22.pdf

Whether you are an individual or a company, a lender will recognise when you are buying a property way below market value that this is a SRB...As you obtain the mortgage at the lower price of selling as to the MV, then you have to provide a 25% deposit....However many lenders will not lend in these circumstances....

VIGILANT22

thewhiteone wrote: »

Your a TROLL!

Just like your thread on cold calling! and then becoming all hot under the collar with advisers/IFA's who are posting on there....who is the troll? who is hiding behind the screen????

Thrugelmir

ohwattagosiam wrote: »

Value of the outstanding debt, plus a few thousand more to clear his other, much smaller debts, and to put a new heating system in.

Then the transaction would be viewed as contrived. Not on commercial terms at arms length. As your family member should be receiving £50k for the equity in the property.

VIGILANT22

Thrugelmir wrote: »

Then the transaction would be viewed as contrived. Not on commercial terms at arms length. As your family member should be receiving £50k for the equity in the property.

Thks...what I have been posting since yesterday and being called a troll etc...........:)

Thrugelmir

VIGILANT22 wrote: »

Thks...what I have been posting since yesterday and being called a troll etc...........:)

Contrived in the sense that the family member is staying in the property.

VIGILANT22

Thrugelmir wrote: »

Contrived in the sense that the family member is staying in the property.

It makes no difference whether it is family or not....that's why Sale and Rent Back has become such a no,no with lenders...Many mortgage advisors are also prohibited from doing such transactions...

Sorry I should have added, many people try to say they're not staying in the property, however the solicitor also has an obligation here to confirm the owner is leaving the property.........

ohwattagosiam

VIGILANT22 wrote: »

It makes no difference whether it is family or not....that's why Sale and Rent Back has become such a no,no with lenders...Many mortgage advisors are also prohibited from doing such transactions...

Sorry I should have added, many people try to say they're not staying in the property, however the solicitor also has an obligation here to confirm the owner is leaving the property.........

I believe that Thrugelmir was writing in regards to making any Housing Benefit claim.

I think we'll change tack with you, as you still insist on providing problems rather than solutions. It's no good only rubbishing ideas. Even House (the brilliant character from the TV show of the same name) who rubbishes a lot of his teams ideas, comes up with the goods in the end, so...

What would you do in regards to this situation? How would you go about resolving this issue?

VIGILANT22

ohwattagosiam wrote: »

I believe that Thrugelmir was writing in regards to making any Housing Benefit claim.

I think we'll change tack with you, as you still insist on providing problems rather than solutions. It's no good only rubbishing ideas. Even House (the brilliant character from the TV show of the same name) who rubbishes a lot of his teams ideas, comes of with the goods in the end, so...

What would you do in regards to this situation?

Ahh...it is nothing to do with bl***dy housing benefit!...Do you know I would help you, but you are so sure you're right and I am wrong & wanting to call me a troll......Look back over my posts...I am NOT a troll...why would I be giving you this info...do you really think I dont know what I am talking about............:mad:

ohwattagosiam

VIGILANT22 wrote: »

Ahh...it is nothing to do with bl***dy housing benefit!...Do you know I would help you, but you are so sure you're right and I am wrong & wanting to call me a troll......Look back over my posts...I am NOT a troll...why would I be giving you this info...do you really think I dont know what I am talking about............:mad:

I'll say it again. I believe that Thrugelmir was writing in regards to Housing Benefit rather than the mortgage (see link below for info about contrived tenancies, and tenancies on a non-commercial and non-arms length basis)

ownershipoptions.org.uk/pdf/Buying%20to%20let%20to%20a%20relative.pdf

(Wouldn't let me post the above as a link, as I'm a new user:mad:)

I would appreciate it Thrugelmir if you would clarify this?

As for name calling, I don't want to call you anything. It's unproductive. I don't know you, you don't know me. However, the only positive thing you have written in this thread is: I'd be very careful and seek expert advice.

Come up with some helpful solutions/ideas, like how this could be done, and people like Peter L may not think of you as a Troll. If you can't think of an appropriate solution the fine, just say so.