Buying another property

Owt4Nowt_3

My partner and I are looking to buy a property for approx £180,000. I currently own and rent a property valued at £150,000 with no mortgage. My partner has a property valued at £170,000 with a mortgage of £60,000 approx 15yrs to run.
We want to keep and rent both properties, keeping them in our own names.
What is the best way to raise the capital for the new joint property?

herbiesjp

Owt4Nowt wrote:

My partner and I are looking to buy a property for approx £180,000. I currently own and rent a property valued at £150,000 with no mortgage. My partner has a property valued at £170,000 with a mortgage of £60,000 approx 15yrs to run.
We want to keep and rent both properties, keeping them in our own names.
What is the best way to raise the capital for the new joint property?

Well one option would be to raise funds from both properties - raising enough could mean you buy the new property totally with the funds raisded and therefore no mortgage on the new property

However you would need to look closely at the figures to see if it could work for you or indeed be the best course of action

HTH

Owt4Nowt_3

Thanks herbiesjp.

Could I be classed as a first time buyer, as I would be able to get a mortgage to cover my half of the purchase price. Is there any benefit from taking my current property into consideration?

I'm assuming my partner would have to re-mortgage on a buy-to-let basis?

Would it be possible for my partner to keep their existing mortgage and also have a joint mortgage?

Sorry for all the questions, just unsure on what options are available.

herbiesjp

Owt4Nowt wrote:

Thanks herbiesjp.

Could I be classed as a first time buyer, as I would be able to get a mortgage to cover my half of the purchase price. Is there any benefit from taking my current property into consideration?

I'm assuming my partner would have to re-mortgage on a buy-to-let basis?

Would it be possible for my partner to keep their existing mortgage and also have a joint mortgage?

Sorry for all the questions, just unsure on what options are available.

If you were raising the funds from your unencumbered property, then you would not be classed as a first time buyer. The benefit of doint it this way (potentially) is that you could get a free legal and free valuation package.

If you want the mortgage on the new property you would need to get a joint mortgage - you cannot get a mortgage each for your respective portions of the property .

Depending on your partner's scenario they may be able to get consent to let form their current lender. If not a BTL would be in order.

It is possible to have the current mortgage and the new one with some lenders - again all depends on the exact details.

HTH