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What to do; Persist With Sale, Cut Price, or Buy to Let Mortgage
Viet42
Posts: 2 Newbie
Well here goes for my first posting to this forum. (Thanks in advance).
I own a one bed flat (valued at 110,000 mortgage just 27,000). The plan was to sell, release equity and buy a larger family property (currently renting).
My question is: Would it be possible to get a buy to let mortgage and release some equity to enable us be able to buy that dream family home. Will banks look at the high valuation to mortgage and take that into account by offering us a great mortgage deal. (We expect no problem in renting the flat but there are lots of expenses with this option).
The other possibility would be just to knock our sale price down to get more interest. It would be a killer to knock sale price down by 10K (would prefer 5K) but it might be worth doing given lots of our 'dream properties' would be selling at some discount too.
What to do? Anyone been in similar position. Advice would be very much appreciated.
I own a one bed flat (valued at 110,000 mortgage just 27,000). The plan was to sell, release equity and buy a larger family property (currently renting).
My question is: Would it be possible to get a buy to let mortgage and release some equity to enable us be able to buy that dream family home. Will banks look at the high valuation to mortgage and take that into account by offering us a great mortgage deal. (We expect no problem in renting the flat but there are lots of expenses with this option).
The other possibility would be just to knock our sale price down to get more interest. It would be a killer to knock sale price down by 10K (would prefer 5K) but it might be worth doing given lots of our 'dream properties' would be selling at some discount too.
What to do? Anyone been in similar position. Advice would be very much appreciated.
0
Comments
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Persist with sale. What sale? Sounds like there isn't one! How long on the market? If a long time, well, it's NOT worth 110,000 or it would be sold!
Cut price. See above! If the house is not selling, you need to adjust the price.
BTL. You should be in a good position ref BTL mortgage deals. Depends to some extent on expected rental income which affects how much lenders will offer.
You're right there are expenses. Budget 10 months rent pa, budget for repairs, advertising/vetting, agent (unless you DIY), insurance/gas certs/EPC etc, and more.
Check out landlordzone and get a good book on renting, + join a LL's association. RLA or NLA0
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