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general advice and 1st time buyer status
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[Deleted User]
Posts: 0 Newbie
Hi
My fiancee and I each own our own (mortgaged) flats. One was purchased in 2005 (fixed until 2015) and the other in 2006 (not tied in to a deal). We are planning to move in together later in the year and the plan is for me to sell my flat, rent out her flat (due to redemption penalty) and then move into a new rented house. We've decided to rent a place initially as both of the flats are too small for both of us and we wanted to focus on the wedding first. After this we need to consider our options for buying a place together. I'm thinking the options are:
1. Borrow against the equity in her flat and combine this with the profit from the sale of my flat to provide a deposit for our place togther.
2. Sell her flat and take the hit on the redemption penalty and combine this from the profit from my flat.
3. Rent until 2015 and then sell her flat and combine this with the profit and interest from my flat sale.
I was wondering though about our 1st time buyer status. If we rented for a period of time would be revert back to "1st time buyers" in the eyes of a lender? (option 2) As my flat will be sold first will I be considered a first time buyer after a period of renting and my partner won't because her flat hasn't been sold yet? (option 1) If we choose to borrow against the equity in her flat and combine this from the profit from my sale(option 1) how would the new mortgage lender view the existing mortage which is still in place on her flat?
Sorry, lots of questions! Thanks
My fiancee and I each own our own (mortgaged) flats. One was purchased in 2005 (fixed until 2015) and the other in 2006 (not tied in to a deal). We are planning to move in together later in the year and the plan is for me to sell my flat, rent out her flat (due to redemption penalty) and then move into a new rented house. We've decided to rent a place initially as both of the flats are too small for both of us and we wanted to focus on the wedding first. After this we need to consider our options for buying a place together. I'm thinking the options are:
1. Borrow against the equity in her flat and combine this with the profit from the sale of my flat to provide a deposit for our place togther.
2. Sell her flat and take the hit on the redemption penalty and combine this from the profit from my flat.
3. Rent until 2015 and then sell her flat and combine this with the profit and interest from my flat sale.
I was wondering though about our 1st time buyer status. If we rented for a period of time would be revert back to "1st time buyers" in the eyes of a lender? (option 2) As my flat will be sold first will I be considered a first time buyer after a period of renting and my partner won't because her flat hasn't been sold yet? (option 1) If we choose to borrow against the equity in her flat and combine this from the profit from my sale(option 1) how would the new mortgage lender view the existing mortage which is still in place on her flat?
Sorry, lots of questions! Thanks
0
Comments
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Unless, any of you had those existing flats given to you as a present/inherited, you will never be a 1st time buyers again and therefore will be liable to pay a stamp duty tax.Also thereis a high chance your existing lenders will not agree for you to let your existing places out, as that would be classed as Buy-to-let and therefore you would need a different buy-to-let mortgage, which attracts a higher interest rate due to a higher risk to the lender.0
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FTB mortgages aren't any better than normal ones so it doesn't really matter if you're treated as a FTB or not.
First step is to ask permission to let your gfs house.0 -
FTB mortgages aren't any better than normal ones so it doesn't really matter if you're treated as a FTB or not.
First step is to ask permission to let your gfs house.
Yeah I wondered about that. We were planning to let the flat out privately but don't want to change to a BTL mortgage as the penalty fee would apply and defeat the purpose. What are the options? Thanks0 -
Yeah I wondered about that. We were planning to let the flat out privately but don't want to change to a BTL mortgage as the penalty fee would apply and defeat the purpose. What are the options? Thanks
Ask your lender for consent to let.
Check your lease - you might also need the freeholder's permission, and might have to pay for that, too.
You'll also need landlord's insurance, a gas certificate, and EPC, etc...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.0
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