Divorce Advice - New Mortgage, Save or invest?

moneysavinggirl2010

Hi all

I would be very grateful for any advice/thoughts/recommendations on the following.

I am unfortunately in the process of getting a divorce. My husband and I have 4 properties - 2 of which we are now living in separately as our PPR's and 2 of which are rented.

The 2 rental properties and the property my husband now lives in are all within 1 Buy to let mortgage portfolio with The Mortgage Works.

The options I am looking at, in addition to keeping my PPR, are either to:
a) keep one of the rental properties myself or
b) my husband to effectively buy me out - giving me the difference in the values of all 4 properties. (We are in the process of arranging for them to be valued but this is likley to be approx £60k)

With option a)
I would need to remortgage to transfer the property out of the existing portfolio - so a new Buy to let mortgage would be required.

With option b)
I would either re-invest in an alternative buy to let / holiday investment property - thus again a new buy to let mortgage
or
I could invest the money elsewhere - as recommended by yourselves - perhaps to re-invest in property at a later date when the market is more favourable?

The current rental property under consideration:
Rental = £550/month
Value - approx £160K
Current Mortgage - £91,490 - 2.45% variable interest only -
£186 /month.

I am leaning towards getting the cash to reinvest - as I would probably like to invest in another holiday rental (the property my husband now lives in was originally a seaside 2nd home which we rented to family/friends in holidays too - and I miss it)! But I am concious that the market for both property and mortages is not the best at present. However I also dont want to miss out on any leveraging of the current rental property - either by selling it now or later to re-invest; or to retain and remortgage at a sometime in order to purchase an additional property.

Many thanks for your help.

luckyfool

Your terms on the Portfolio buy to lets with TMW are pretty advantageous and you are unlikely to get anywhere close to that when you remortgage, especially if you try to get equity out up to the maximum 75-80%.

moneysavinggirl2010

Thanks - yes I realise they're good terms.
Unfortunately the hubby (ex) is planning to take on the Portfolio as he will retain the 2 other properties within it - and possibly the 3rd under question. (I hope to retain my PPR mortgage - with Barclays Open Plan at 1.19% :-) )
So its a question of whether I remortgage the existing property or buy an alternative property or take the money and invest elsewhere for the short/long term I think.