Working out our options;

Seanymph

OH has a house, value around £150k, paid for.
I have a house, value around £220k, paid for.
We will be living together in my house, his eldest son lives in his and pays the bills and a reduced 'rental'.
OH earns around £30k a year, I earn around £5k.

We would like to buy ourselves a holiday property in France.

We could put down a deposit of, reasonably up to about £20k - although less would be better because I am currently renovating my house.

How would we be better off doing it? We could, according to online questionnaires have a french mortgage. I dare say we could raise a mortgage on his property in England, but would it need to be a buy to let? And are they more expensive? Or should we raise it on mine? Although he isn't on the deeds of mine - (nor I on his).

Could someone help me work out the best course of action please?

Thanks in advance.

Seanymph

Is there a better place to have posted this?

skid112

give them a chance, you posted this at 7.20 am, most normal people are still just waking up

handytips

There are many considerations in your case. How much does the property in France cost ?
You can raise upto 80% of the value of a property on a Buy to Let basis as long as the Rental income stacks up, most landlords take the Buy to let mortgage on an Interest only basis, most will allow a term upto the age of 75. To simplify how Buy to Let works the property proposed for the lending is assesed by the surveyor not only for its Value but more importantly for its rental value, ie if the mortgage payment is £400 pm then the rent received would have to be atleast £500 pm. Hope that helps. There are very few free deals with BTL and most are arranged via brokers. most will come with and arrangement fee (can be added to loan) of between 2.5 and 3.5% of amount borrowed. There will also be a valuation fee (approx £370) and legal fees (approx £460) the valuation fee is paid at time of application and the solicitors fee can be deducted from the advance. As you only earn £5k a year it is doubtful that you would be able to raise anything on your property as you would fail on the affordability calculators. I will send you a PM

Seanymph

Thanks Handytips.

My OH is happy to be on the mortgage with me (or instead of me) there is only the logistical exercise I think, we will be married shortly, and have all options available about how to seperate ownerships.

The property we would like to buy in France will cost 70 - 80k Sterling I think. We are currently looking around that bracket.