Additional Borrowing

Murielson

Looking at buying mother-in-laws rented property as current owners have to sell. She has been offered a good price as they want to offer to current tenants first etc (plus hard to sell elsewhere with tenancy agreement, sitting tenants!!)

MIL and husband would stay on as tenants paying rent. Agreement will be put in place.

Looking at re-mortgaging chez Murielson to fund this purchase with extra £100k @ 5.9% with current lender. Enough capital in our property to cover this and new purchase would be in our name.
No buy-to-let rates. Local estate agent rates property at approx £38k more than we are being asked to pay.

Question - is the remortgage a good rate or might it be better best to go elsewhere? Skipton is current lender and been with them for about 7 years.
Doesn't look like any major tie ins and hope to pay off in 5 to 10 years.

Looking at lack of problems with this route rather than new mortgage. Normal surveys etc will be carried out anyway but it is a valuable property as it has some land and we may be able to develop or sell to developer for 2 more properties and still leave MIL in situ.

Are there any problems with a loan from a different lender on the property as well as Skipton if we went this route? What surveys/valuations etc required if getting additional borrowing from current lender or new lender?

Wrote the above quickly so happy to provide further info as required.

Any thoughts appreciated.

debjam

have you thought about the tax implications? you might be better getting a buy to let mortgage as you can offset the interest payments against rental income to reduce tax bill.

Murielson

Good point - certainly something to consider.