Early remortgage for a buy to let

savysaverbrett

Hi all,

In jan 2012 I bought my house for £160,000 with a £40,000 deposit.

My dad has recently inherited a house worth £200,000.

His brother wants to sell his half, but my dad wants to let it.

I am going to look into buying out my uncle so that me and my dad will co own the property.

I'm a year into my two year morgage term.

My question is, can I remortgage mid term to realise some of the 40,000 I put into my house in order to fund it?

And...

What sort of deposit would I need to buy half of a second property ?

I goimg to look into this properly this week, but wondered if I could get some advice here as well ?

Thanks
Brett

Thrugelmir

Your father will need to be on the mortgage as well. So technically you won't need a deposit.

mollyjester

I would head in the direction Thrugelmir was taking you and actually mortgage onto the new property. Your own home is 75% LTV so you wouldn't release much if any capital and I suspect you would have a nightmare trying to re-mortgage so soon and may even be stung by early repayment charges depending on the clause in your offer - most around around 5% this early in.

You could go into agreement with your uncle and then get a small buy to let mortgage to cover your share with your dad named as he will be on the title. It seems to most logical way to do it and it can be done contemporaneously so when your uncle comes off the funds are transferred to him and then you are added to the title.

GMS

Can your Dad not remortgage to buy out his brother?

dimbo61

Is this really such a good idea?
What condition is the property in?
Is it in a good area for renting?
Do you know how much work there is in becoming a Landlord?
If you sell the place now then both brothers will get 50% each after all the selling costs have been taken out.
Your dad may need to spend alot of money ( depending on the condition of the property) to make it ready for renting

savysaverbrett

Sorry for returning 7 months late. We had to hold off doing it because there was a clause on the house as it had some work done on it (stair lift, wet room ) by the council and we would have to have paid 7k back if it was lived in before jan 2014. Thanks for your answers. I plan to do it without a deposit. Turned out I could use my dads equity towards my deposit. It does need a lot of work though. It's on the market at the moment. If for example the best offer is 160k and we both think we can warrant doing it up at that price then we'll just match it to buy my uncle out. Won't make much yield on the rent though !!