Ideas with house buying please

IFONLY_3

Hi - I could do with some help!
Here is some background!

My parents in law live on a farm which my husband and I are going to live on next year when they retire.

At the moment we are living in a house which we own - had a £100,000 mortgage and was able to pay off in 6 years of good saving. It is worth - top end £210,000 Lower end £185,000

The problem is - they have seen the bungalow they want for £245,000 - which of course we are expected to pay for.

We wanted to be able to keep this house to rent out and be able to buy a bungalow and do renovation work to the house on the farm (around £75,000) but are now unsure if we will be able to do all of this.

How would equity work for us?

Any help or ideas how to do this would be very much appreciated!:)

clutton_2

how much is the farm worth ?

tyllwyd

I think you need to be a bit clearer on the question you are asking.

Am I right in thinking that your in-laws will be giving you the farm, and in return they are asking you to buy them a bungalow to live in. Will the farm be signed over to you or will it stay in their names?

You have a house with no mortgage worth about £200K.

Ideally, you want to be able to raise £245K to buy the bungalow and £75K to do work on the farm without selling the house so that you can get an income by renting it out.

Would it be possible for you to take a buy to let mortgage of say £175K on the house, then put £100K down as the deposit on the bungalow, take a mortgage of £145K for the bungalow and have £75K for the farm? Or would you be able to borrow money against the farm? It looks like a huge commitment even if it is possible - I think you need some good advice from a financial adviser/solicitor.

IFONLY_3

Thanks. I think we will have to arrange to go talk to the bank! The farm is worth around £650,000 and yes we will be taking over.