Moving - Deposit help!

evo180

Hi all,

To briefly explain I bought a flat just over a year ago of which my family helped fund a larger share of the deposit. I'm now looking to move into a house with the girlfriend but I need my deposit share, possible even a little bit more to fund it.

Is there anyway around this without selling the flat?

In an ideal world it would be nice to rent the flat out as that would easily cover the mortgage payments.

Will answer any question if this is too brief!

Thrugelmir

Suggest you live in the flat for a while and build your equity up.

Also Buying and selling property within a short time frame is a complete waste of money.

Letting a property is a business not a hobby. So research this further before making hasty decisions.

holly_hobby

I will try and give you some positive and helpful assitance, to enable you to consider the matter more fully ....

What is your current mortgage against the current (estimated) value/ orig pch price (as only 12 mths ago).

How much additional equity do you wish to release ?

What is the anticipated rental income you expect ?

Have you let a propety before ?

What is your salary ? (if you don't want to be specific, is it less than 30K, less than 25K ? etc)

You state your family assisted with the deposit - it may be wise to check with the donor(s) if they are happy with you proposition to effecitvely withdraw their deposit (not really a matter for the board, but a family discussion).

Holly

evo180

Thrugelmir wrote: »

Suggest you live in the flat for a while and build your equity up.

Also Buying and selling property within a short time frame is a complete waste of money.

Letting a property is a business not a hobby. So research this further before making hasty decisions.

Well have about 32-33% built up.

I'm not looking to sell, looking to buy and know what you saying which is why I want to rent. That way it covers the mortgage and I can wait for the property prices to increase.

evo180

holly_hobby wrote: »

I will try and give you some positive and helpful assitance, to enable you to consider the matter more fully ....

What is your current mortgage against the current (estimated) value/ orig pch price (as only 12 mths ago).

How much additional equity do you wish to release ?

What is the anticipated rental income you expect ?

Have you let a propety before ?

What is your salary ? (if you don't want to be specific, is it less than 30K, less than 25K ? etc)

You state your family assisted with the deposit - it may be wise to check with the donor(s) if they are happy with you proposition to effecitvely withdraw their deposit (not really a matter for the board, but a family discussion).

Holly

Well paid 154k Outstanding about 100-104k. Estimated value about 155-160k I would say as there is a flat the same for 170k on the market now - unlikely they will get that much though.

I would need about 25k to get a fairly decent mortgage on the house.

Rental income would be 800-900pcm.

No but kind of sub-letting at the moment as my girlfriend pays me an amount monthly. I also know various people that would move in or that the council would take me up on the offer.

Between 30-35k - Girlfriend the same.

Because my Mum is 61 and Dad is 66 it's difficult for them to get a mortgage even though they both work and have mainly property assests. They are happy for me to withdraw any amount however because my dad/mum can't take over the mortgage it means I have to continue with it?

I do also have a car worth about 12-15k depending how long I left it on the market! But the idea of the house is that I will actually use it as the flat doesn't have parking. I've done about 1,000miles in two years!

evo180

I've had an idea.

Apparently there are 25+ lenders that will give mortgages to over 60's (If you know who they are that would be great!)

If I sold the flat to my parents I could then give them their cash share back and use the rest as a deposit to get my own house? Providing that's possible?

getmore4less

evo180 wrote: »

I've had an idea.

Apparently there are 25+ lenders that will give mortgages to over 60's (If you know who they are that would be great!)

If I sold the flat to my parents I could then give them their cash share back and use the rest as a deposit to get my own house? Providing that's possible?

Do your parents want the hastle of becoming landlords at 60?


If you try to relaese equity from the flat and let it out your mortgage will probably get more expensive and most BTL have substantial fees. consent to let will be more difficult to release equity

gross yield is aound 6.5% so some voids, costs and debt costs could make this marginal busines.


you also need to have an proper exit plan for the house situation if you buy joint

whats the OH bringing to the table for this house

how much is this house going to cost?

don't forget fees


Looks like you don't need a car where you are so why not stay, sell the car and build up a bigger deposit.

whn you need a car get a cheaper one.

zebedy74

Most lenders will,lend over the age og 60. Most lenders will lend to age 75 and some till 80 and the occasional one will not ecven set a time limit on how old you can be.

The biggest problem would be for them to evidence any income that they may have after age 65. they would still need to afford the mortgage after retirement in the same way as before retirement and this cannot use income such as state pension but must use earned income, comnpany/private pension, rental incomes.
If you sold the flat to them for £150 and assuming you gifted back the £30k deposit they would still need a mortgage of £120k but would only have probably a maximum of 9 years (your dad being 66) in which to pay this debt back to the lender and this would mean monthly payments in excess of £1250

If you plan to release the deposit from your excisting property and then rent the property out then this would mean the mortgage needed to release the money would be a buy to let and these are mainly restricted to borrowing a maximum of 75% of the property value, to rent a residentially mortgage property is commiting fraud and i am sure you are not considering this...although you may be able to do a small "Further Advance" and then in 6 months apply for a Consent to Lease where the lender should allow you to rent your property until your mortgage deal expires and then take out a new BTL mortgage on it. But lenders will normally only consider this if the mortgage or any advances have been in place for at least 6 months

Rock and a hard place...

Good Luck!

Yorkie1

Also double check that your own lease of the flat allows you to grant a tenancy to someone else.