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Been given notice to move - thoughts on how to avoid in the future
Fuzzyness
Posts: 635 Forumite
We've been happily renting a house for just over three years but a couple of weeks ago we were served notice to vacate the property as the owner was planning on moving back in. No worries from us, its one of the perils of renting, the house we live in is nice but we've had doubts about it previously so not that fussed we've had to move out. Luckily we've found somewhere else locally that we're happy with and are moving in on the 11th July.
anyway, where is this leading? The shock of having to move out has now passed. we've got a two year old and we're slightly worried that where we are moving to will mean that the same or similar thing will happen again in a year or two's time. We're happy renting long term as we own a property in cornwall that is being rented out long term and which we have no desire to live in. As we own one property we dont currenlty feel the need to own two properties as we're incidental landlords due to redundancy/work.
now what i'm begining to think is there any way we can make the property that we own enable us to buy somewhere else where we live now so we dont have to go on the rental roundabout every couple of years.
Our mortgage on our property is currently a capital repayment mortage, with 21 months left of a five year fix. we would not want to do anything until this ends i.e. Feb 2013. The ltv ratio is approximatley 50% i.e. house worth 450k and outstanding mortgage at end of 5 year period 240k. we would have 18 years left of the mortgage in 2013.
is there any way that we could extract some equity from this property to use as a deposit on a second property, convert this mortgage on to a buy to let interest only mortgage and get a capital repayment mortgage to purchase another house where we live? Whilst i appreciate you cant provide advice on the details I guess i'm looking at whether my thinking or the principle of what we would like to do is feasible.
and lastly if a property is purchased on an interest only mortgage at the end of the mortgage period you have to pay off the capital element of the mortgage and that is normally done when you sell the house. if when you sell the house it is worth more than the capital part you keep the difference. correct?
if for example we were to buy a second house and pay this mortgage off (capital repayment) we could in time sell the second house to pay the capital element off the house we already own if this were on interest only?
sorry for all the questions but i find this place really helpful and know that someone will have some insighful views on our predicament.
thank you in advance.
anyway, where is this leading? The shock of having to move out has now passed. we've got a two year old and we're slightly worried that where we are moving to will mean that the same or similar thing will happen again in a year or two's time. We're happy renting long term as we own a property in cornwall that is being rented out long term and which we have no desire to live in. As we own one property we dont currenlty feel the need to own two properties as we're incidental landlords due to redundancy/work.
now what i'm begining to think is there any way we can make the property that we own enable us to buy somewhere else where we live now so we dont have to go on the rental roundabout every couple of years.
Our mortgage on our property is currently a capital repayment mortage, with 21 months left of a five year fix. we would not want to do anything until this ends i.e. Feb 2013. The ltv ratio is approximatley 50% i.e. house worth 450k and outstanding mortgage at end of 5 year period 240k. we would have 18 years left of the mortgage in 2013.
is there any way that we could extract some equity from this property to use as a deposit on a second property, convert this mortgage on to a buy to let interest only mortgage and get a capital repayment mortgage to purchase another house where we live? Whilst i appreciate you cant provide advice on the details I guess i'm looking at whether my thinking or the principle of what we would like to do is feasible.
and lastly if a property is purchased on an interest only mortgage at the end of the mortgage period you have to pay off the capital element of the mortgage and that is normally done when you sell the house. if when you sell the house it is worth more than the capital part you keep the difference. correct?
if for example we were to buy a second house and pay this mortgage off (capital repayment) we could in time sell the second house to pay the capital element off the house we already own if this were on interest only?
sorry for all the questions but i find this place really helpful and know that someone will have some insighful views on our predicament.
thank you in advance.
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Comments
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Can you not port your existing mortgage? This would allow you to sell your existing property and not have to worry about any ERCs.0
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existing mortgage is on a house we built on a plot that has been in my wife's family for 30 years. sentimental value and she wont sell it as we wont ever be able to buy something similar in the future. sea view and practically on the beach. as i said we had no intention of wanting a second home as we are content with the we've got.0
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existing mortgage is on a house we built on a plot that has been in my wife's family for 30 years. sentimental value and she wont sell it as we wont ever be able to buy something similar in the future. sea view and practically on the beach. as i said we had no intention of wanting a second home as we are content with the we've got.
Just to check, the property you "own" and currently let is mortgaged? If so, is that already on a BTL loan? If not, that could be a problem already!0 -
the property we currently have the mortgage on, we have consent to let from our provider as it wasnt a buy to let mortgage when we originally took the mortgage. we intend to move this mortgage to a buy to let mortgage when our fix rate period ends. why would it be a problem if it was already on a buy to let mortgage?0
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I'm down there... wish I had a house with a seaview and practically on the beach
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the property we currently have the mortgage on, we have consent to let from our provider as it wasnt a buy to let mortgage when we originally took the mortgage. we intend to move this mortgage to a buy to let mortgage when our fix rate period ends. why would it be a problem if it was already on a buy to let mortgage?
I meant if is WASN'T on BTL terms and you had let it, then that would be a problem.
Many posters here think letting is just getting in some tenants and raking in the rent, without realising residential mortgages don't always consent to letting. Sorry to interfere ... needed to establish that first, but since you have already got that sorted, it is not a problem.0 -
Probably worth a call to your existing lender to see if you can free up some equity without triggering those ERCs. You may be able to get another mortgage product as a further advance.
Speaking to your existing lender is probably a good starting point.0 -
I meant if is WASN'T on BTL terms and you had let it, then that would be a problem.
Many posters here think letting is just getting in some tenants and raking in the rent, without realising residential mortgages don't always consent to letting. Sorry to interfere ... needed to establish that first, but since you have already got that sorted, it is not a problem.
no worries. should have made it clear in OP.0 -
Probably worth a call to your existing lender to see if you can free up some equity without triggering those ERCs. You may be able to get another mortgage product as a further advance.
Speaking to your existing lender is probably a good starting point.
As i said in OP we have just rented somewhere for a further 12 months so wont be looking at doing anything until nearer when our current fix rate ends. the problem we have is our current mortgage is with nationwide and they dont do buy to let products.0 -
Me too. I'd be looking at how to move right backPasturesNew wrote: »I'm down there... wish I had a house with a seaview and practically on the beach
OP what's the rent and shout if you need a new T, we're forming an orderly queue :j0
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