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Financing purchase of second house to renovating and sell
Epiphany
Posts: 37 Forumite
Hi all,
I'm after some advise on an idea I'm looking in to regarding developing/renovating a property.
Myself and my partner recently built our first home and we've always toyed with the idea of getting in to property development and are in the process of remortgaging our self build mortgage to a standard fixed rate mortgage, which will save us a nice monthly sum in reduced interest. As we're remortgaging, we can now increase our mortgage amount, and still be paying less than we are now.
The led us to think about developing, as we can release up £70k of equity from the house whilst not affecting our monthly repayment.
We're thinking about drawing out £30k extra to use as a deposit on a second home worth approx £120k that we could renovate/fix up and then resell at (hopefully) a profit. We'd rather not invest the full £70k as this is far too risky for a first attempt.
My question is, what is the best method of finance to do this? We considered taking a buy to let mortgage, and renting it out for a few years before reselling, however as we're starting out, we'd like to concentrate on gaining capital that we can use to re-invest before we start to tie up funds in rental properties. Can anyone offer any advice as to what we should do?
Thanks in advance for any advice offered!
I'm after some advise on an idea I'm looking in to regarding developing/renovating a property.
Myself and my partner recently built our first home and we've always toyed with the idea of getting in to property development and are in the process of remortgaging our self build mortgage to a standard fixed rate mortgage, which will save us a nice monthly sum in reduced interest. As we're remortgaging, we can now increase our mortgage amount, and still be paying less than we are now.
The led us to think about developing, as we can release up £70k of equity from the house whilst not affecting our monthly repayment.
We're thinking about drawing out £30k extra to use as a deposit on a second home worth approx £120k that we could renovate/fix up and then resell at (hopefully) a profit. We'd rather not invest the full £70k as this is far too risky for a first attempt.
My question is, what is the best method of finance to do this? We considered taking a buy to let mortgage, and renting it out for a few years before reselling, however as we're starting out, we'd like to concentrate on gaining capital that we can use to re-invest before we start to tie up funds in rental properties. Can anyone offer any advice as to what we should do?
Thanks in advance for any advice offered!
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