Selling at a loss and buying a new property advice

belfastguy30

I was wondering if anyone could advise me in relation to selling my current property which is in negative equity and buying a new property?

I had bought an apartment joint with my sister and we currently have an interest only mortgage on this at £127,000. The current value of the apartment is approximately £70-80,000 maximum meaning we are in negative equity.

An opportunity has just come up for purchasing my late grandparents house at £135,000 which I would be keen to do. I'm just wondering if there is any possible way I can manage to do this?

I would need to sell my apartment but obviously there is the £50-60k shortfall which I would need to make up. Is there any way I could try and sell and then move my mortgage to the new property and increase it if need be to make it up to the £135k?

I'm not sure how easy or wise it would be to hold on to my apartment and try and rent it out and get a second mortgage for the house?

Any general advice or suggestions around this would be much appreciated!

Thanks

zzzLazyDaisy

In order to sell the current place, you and your sister will have to find the funds to make up the shortfall on the mortgage, as the lender will not consent to the sale unless the mortgage is paid off.

You may get consent to let from your lender, but that will involve you in landlord obligations. The rent will need to cover the mortgage, plus any expenses, plus any voids. Also you pay tax on the rent (less mortgage interest and expenses).

Even then, you need a deposit to buy the new one, as 100% mortgages went out the window a long time ago (and any chance of getting a mortgage for more than the house is worth is less than zero).

belfastguy30

Thanks very much for the quick response and useful advice! More or less what I suspected but I'd forgotten all about the added need for deposits these days as well!