scottish and english selling and buying

wee_mouse

Not sure what is best here.

I own and rent out a flat in Glasgow. The flat has increased in value and so if I sell I'll make quite a bit of money. However, I live in London and I'm tired of renting down here and want to buy my own place. I think I'm still out of my league in London.

My salary is approx £25K
I currently let my flat for £430 pcm (I could get more, but I like have a friendly relationship with tenents)
My rent in London is £450.
my outstanding mortgage is approx £47K I think I can sell for approx £135/140K
I don't have a great mortgage deal at the mo as I didn't want to be tied in or pay to change provider. Currently repayments are £320 per month. I know I can get a better deal.
I would imagine that I could really only afford to buy somewhere for approx £170K which doesn't buy you much in London.

I'm trying to work out my options, which I think are:
1. sell the Scottish flat and buy what I can afford in London

2. change mortgage to buy to let in scotland (or remortgage and agree that I'm letting it, as I already am) and buy what I can in London. I have considered this once before, but mortgage/finace advisers in England don't seem to understand the Scottish offers-over system and I don't think I'll be able to borrow as much on the flat.

does anyone have any suggestions or know of a decent place to look for advice - in particular for the whole scottish/english thing?

ta!

irnbru_2

wee_mouse wrote:

I currently let my flat for £430 pcm (I could get more, but I like have a friendly relationship with tenents)

wee_mouse wrote:

my outstanding mortgage is approx £47K I think I can sell for approx £135/140K

wee_mouse wrote:

Currently repayments are £320 per month.

AFAICS you have a yield of ((430-320) * 12)/(135K-47K) = 1.35%.

Excluding any tax issues.

I think you should speak with an accountant to see what benefits you'ld have by having a BTL.

Are you declaring the income from the rent?

wee_mouse wrote:

mortgage/finace advisers in England don't seem to understand the Scottish offers-over system

That shouldn't matter. You get it valued for sale at FP. You take that as it's upper value.

wee_mouse

Thanks

But, I have no idea what you mean, what's AFAICS? What is FP"?

not declaring at the mo, but want everything above board asap.

irnbru_2

wee_mouse wrote:

But, I have no idea what you mean, what's AFAICS? What is FP"?

AFAICS - As far as I can see
FP - Fixed Price

wee_mouse wrote:

not declaring at the mo, but want everything above board asap.

Tut tut.

Go see an accountant.

wee_mouse

thanks. will do and I consider myself told off.