inherited house mortgage advice

holly_hobby

Oh you little sweetie ... I am partial to the odd Voddy :beer:

I did forget to say I was so very sorry for your loss ... and I'm sure your Mum is already v proud of you just for being the lovely Son you appear to be ....:A

Holly x

twelvegoldbars

hi guys,back again,well yesterday my remortgage was paid into my bank!,jobdone on that score,was an interest only mortgage from santander,2 year product, to the tune of 30k,all ready to go now ,work starts next week :T

the broker i had was absolutley brilliant ! walked me through everything i need to know,was quite a scary process for me as its my 1st mortgage,but all went very well.

so hopefully once this house is done,could do with some advice on how things would work about getting another house to do up and modernise ,is it as simple as porting my existing mortgage on to the next house?i take it when the 1st house is sold ,the mortgage i have now will be redeemed?,many thanx to all

holly_hobby

Hello stranger !

Well done on securing your mge, clever you and clever broker (you seen there are circs when having a broker can really be worth any fee)

Anyhoo, moving onto your question - all things being equal, if you sell the current property (and if the product is noted as having portability), then it may be possible to port it to your next residential property (subject to status and the lenders agreement).

To be clear, the term "porting" relates only to the mge product itself, NOT the borrowing itself - to which you will be exposed to status/affordability checks on the TOTAL amount of borrowing reqd.

However, we have a fly IMHO - if you intend to pch the next property as a pure development, and don't live in it, then a residential mge isn't really appropriate - as essentially the pch is of a commercial nature, and any mge should therefore be at commercial rates.

Now, thats me being Miss Fussypants .... and some will say how would they know what the real basis of the lending is, but if you continue to redeem and attempt to port your Santander (or any resi mge) within what would be considered short periods of time in terms of resi home ownership, your hand will really be revealled without much trying TBH.

Don't forget as a developer, on sale, you're not exposed to CGT but income tax on the generated profit (which of course may be mitigated by permitted deductions).

Your broker is there to guide you, just be careful re seeking residential funding for what is really commercial circs.

Hope this helps

H x

twelvegoldbars

thank you holly!,ive still been here lurking around:D

going to look into things further down the line when completion of this house is nearly at a end,then will go see my superbroker and find out a little more,well worth his fee,and worth doing,it really takes the stress out of it all,in my opinion he is worth more !

so really just need to look at every option available and lull it all over,ideally it would be good to secure and complete on another property as this one comes to and end but not sure how to proceed on that idea yet,but with the help of my broker and people on here im sure it will happen ,its all very exciting :beer:

shortchanged_2

Out of curiosity what did the banks surveyor value the property at for the purposes of the mortgage?

twelvegoldbars

shortchanged wrote: »

Out of curiosity what did the banks surveyor value the property at for the purposes of the mortgage?

145k around 210 k when work finished

shortchanged_2

twelvegoldbars wrote: »

145k around 210 k when work finished

Spot on with your estimations then.