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Keep my home and buy another
Guerilla_2
Posts: 5 Forumite
Hi,
I owe 25k on my house, and I would say its worth around 140k - 150k (will get it valued). I want to keep this house for our retirement, but the GF wants to live for now etc... Ideally I want to move up to a three bed house around 185k. How could I keep my old one? I thought I could borrow against it, and get a BTL, and borrow the rest for the new house. (no deposit as yet, but I have overpayed my current mortgage to the tune of 20k, which I can get back, so I could use some of that for the deposit.
Any thoughts/help would be greatly appreciated.
Matt
I owe 25k on my house, and I would say its worth around 140k - 150k (will get it valued). I want to keep this house for our retirement, but the GF wants to live for now etc... Ideally I want to move up to a three bed house around 185k. How could I keep my old one? I thought I could borrow against it, and get a BTL, and borrow the rest for the new house. (no deposit as yet, but I have overpayed my current mortgage to the tune of 20k, which I can get back, so I could use some of that for the deposit.
Any thoughts/help would be greatly appreciated.
Matt
0
Comments
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Some additional info - I am 32 and the GF 30 (no kids - yet). I overpay my £322 mortgage by £500 each month, so will be mortgage free (if we stay here) in just over two years - This coincides with my fixed term rate finishing, no tie in.0
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you can change your current residence to a BTL .and release some equity to purchase a new house .Because this have been your main residence you can rent it for 3 years and sell without having to pay capital gains tax .
BTL normally requires a 15 to 20 % deposit ,and the rental should be 125% off the mortgage .so if the mortgage was £100 the rental should be £125 .
There is better tax relief on this type off BTL because it has been your main home .0 -
Thanks. I take it I can just keep the house on BTL until its paid off again (25 years or so), then the rent will be added to my income/pension etc?
Matt0
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