what to do?

listerofsmeg_2

Hi I am new to property development. A little about my situation,

I own my house outright (315k) and I have a 30k deposit avaliable. I don't have a job (I'm taking a break to look after my 2 small children at the moment). My partner has a job and is earning approx 40k per year. However, he's about to leave his job in the summer to work with me in property development.

Now, my questions are...

Should we apply for a new mortgage to purchase our 1st development property, or should we try to remortgage our house and therefore be a cash buyer on the development property?

Is it illegal to apply for a mortgage knowing full well my partner will be leaving his job soon? He hasn't handed in his notice yet, but will soon so time is ticking...

Should we apply for the mortgage in his name or my name? I have bad credit, but do own the house. He has a reasonable credit rating and a job (see above).

listerofsmeg_2

bump........

Shimrod

Do you have a business plan? Have you worked out how much you are going to need to buy and refurbish a single property? How many properties you need to turnover each year and margin you need to make to meet your income requirements? How are you going fund the subsequent house purchases (and living expenses) if the first house takes a while to sell? Have you figured in interest costs and how much you need as a deposit for the first purchase?

If it was me going ahead with this debt funded business, I would leave my partner working until at least one property has been developed and sold, just so there is an ongoing income stream in case it all goes pear shaped. But then I'm a cautious type who wouldn't go into property development on the back of a huge debt when house sales are near all time lows and mortgage lending is the lowest in 9 years.
http://www.bbc.co.uk/news/business-12249166