Mortgage advice for my asset rich & cash poor mother

Big_Zee

Hi,

My mother (65) owns outright 12 semi-detached houses which she rents out and forms her income (she inherited these from her father who was a builder). She also owns her own house outright which is worth about £300k as well as about 20 acres of agricultural land.

All in, the total value of her assets is about £1.5 million with no mortgages.

She currently has no savings, and the income from her 12 rented properties is about £60,000 per year minus agency fees, maintainance costs etc.

She would like to move home, but is very specific about the type of house she would like and village she wants to move to.

A property she really like has just come on the market, but she needs to move quick to acquire it. However, with all her assets tied up, her age being 65, and her income only from rented property she seems to be having problems getting anything together to purchase the property she wants.

She's not great with figures or technology, and doesn't understand anything to do with finance or mortgages, and doesn't have a financial advisor.

I think she spoke to a mortgage advisor at her local bank who didn't seem to be much use although I am not sure what my mum told her. From second hand conversation, the advisor told her the bank wouldn't give a mortgage on rental income because it's not guaranteed.

However, just given the amount of my mums assets I would have thought that it should not be to much of an issue to be able to somehow raise enough funds get a mortgage to purchase this house ( which is about £400k - just a bit more than her current house which she would sell after).

Can anyone provide some sensible advice on what she should could possibly do?

Thanks in advance.

Thrugelmir

With no savings she'll need to sell some assets to bridge the gap and pay the costs of moving.

Time to take advice and review the investment portfolio perhaps. As £60k gross return doesn't look good on the amount of capital tied up.

GMS

Your Mum could look to raise money on the Buy to Let portfolio which should have the added benefit of helping her tax liabilities by iffsetting the cost of the mortgage(s) against the tax due (interst element)

Speak to a broker and see how to proceed