Move mortgage on another property

ziof3ster

Hi,

just a newbe so be nice :-)

I've got a property bought about 1 year and half ago in central london and i my main residence.

I've bought it at very competitive price (compered with other property in the same block, after checking on land regitry) plus I've completely refurbished it at quite good standards.

My idea is to move the mortgage I've got with thi property buying another one and keeping same value, LTV etc (so my bank is happy), moving my main address in this new property.

For the "old" one, what should be a BTL I think. But i a normal BTL or a remortgage BTL? Also, how the "second" bank will assess the property? How the "first" bank will assess the (hopefully) capital gain?

Of course I will make sure the property has effectly increased in value and I can extract money before all of this, but let assume it happened :-)

Thank!

Zio

Thrugelmir

How you are going to fund the deposit on the new property?

ziof3ster

Part I have funds, part extracting equity from it?

Thrugelmir

ziof3ster wrote: »

part extracting equity from it?

Lenders are highly unlikely to accept this as a source of deposit in the current market.

ziof3ster

for what I know, all the property developers extract money and reivenst in them portfolio in this way...didnt think wa that unlikely..

Also, if a my first property is a 2bed and my idea i to buy a 1bed, the idea i to downize...so naturally I hould have a surplus of funds to reinvest...

Actually (maybe my englih is still not perfect but let say:

1st property

bought for 250k with a LTV of 75%
now evaluated 300k

2nd property

to buy for 250k with a LTV of 75%


with thi operation, I hould be able to get money off the property without increase the LTV. Can a bank be not happy with this?

And wich bank? the one for the 1t property or the one for the 2nd?

Thank
zio

GMS

How much would you expect the flat to rent for? Assuming the mortgage of £225,000 (75% of 300k estimate) is possible you would need a substantial rental income to support it.

How long have you owned the property?

ziof3ster

Owned the property for 1 year and 5 months...

For the substantial rent part, I've done some research and math and should be able to pass the rent assessment by the BTL lender.

GMS

Which lender wll it pass for?

How much is the rent?

Has your current lender agreed to the porting to new property?

ziof3ster

Had a chat with the lender of my first property, and they are happy to pass the loan if I keep the same LTV and same money borrowed, otherwise a little penantly on the difference to pay....so no problem for that.

On the preperty that will become a BTL with a new lender, I've checked the rental market and calculated the rental assessment (didnt mention I've already have another BTL property so done this before) and should be fine too.

The BTL lender will be RBS, the actual lender for the main residential is YBS.

GMS

Seemingly you have it all worked out so why are you asking questions on the forum?

ziof3ster

oh just because I want understand how exactly works (and if it possible do something like this).

In particular, is my interest have the best possible evaluation from my first lender (to get more money off) and the lowest one (in terms of capital) from the BTL one.

SO basically how it works? the bank share the surveyor? The send one indipendently?