Buying a 2nd home when mortgage free

silvercar

carlbcfc wrote: »

Thank you. Okay, so my mother has a long term partner, and they live in the house, it is theirs. Lets say for example that my mother moved out during some time apart/to be nearer another relative, and wanted buy buy a flat rather than rent, without the complication of selling the original house, for when they reconcile at a later date?

Would a lender accept the above circumstances?

If her total outgoings - including any commitment to the first home -made the arrangement affordable.

[Deleted User]

Please don't buy a second home. Some people need a first one.

carlbcfc

Yes I know, but the world keeps moving.

witchy1066

I apologise if I am missing something here, I am buying a house but not at this moment selling my current home

I do intend to sell once I am settled but the question has never been asked as to what my intentions are with my current home,

if OP has the deposit and means to pay the mortgage on another property why should it be so problematic , loads of people do it to avoid the hassle of buying and selling at the same time,

if OP decides to sell current home or not at a later date surely that is their decision,

I rather like the idea of me and my partner having a house each,
he is sooooooooooo untidy

JimmyTheWig

carlbcfc wrote: »

It amazes me how hard it can be for someone who is mortgage free, with disposable income, to buy another property. The way it looks is he will have to raise a bigger deposit and take a BTL mortgage. I don't think she had this in mind when she was offering to help someone out.

As has been said, she can raise the money on her current property to be in a position to buy the new property.
The new property will be a BTL (even if the rent is £0) but with no mortgage secured on it is doesn't really matter what it is classed as.

JimmyTheWig

witchy1066 wrote: »

I apologise if I am missing something here, I am buying a house but not at this moment selling my current home

In your case you are buying this second home to live in. It will be your second (or first, even) home.
This is different to the OP's scenario.

Werdnal

witchy1066 wrote: »

I apologise if I am missing something here, I am buying a house but not at this moment selling my current home

I do intend to sell once I am settled but the question has never been asked as to what my intentions are with my current home,

if OP has the deposit and means to pay the mortgage on another property why should it be so problematic , loads of people do it to avoid the hassle of buying and selling at the same time,

I think you may have misread the OP?

Their plan is to buy the 2nd property and let a relative live there. I do not think there was any mention of them selling their 1st property at any time soon. The 2nd property is an investment.

Regarding your situation, are you planning to leave the original home empty? Let it? There are certain requirements on mortgage, insurance etc that will be relevant in either case.

There may also be CGT issues if you live in the 2nd property and do not sell the 1st one within a certain time.

Cornucopia

There's no objection from either HMRC or the Lenders to people having second homes.

But there are rules that apply to both that can be more complex than the very simplest scenario of one person-one property.

Simply assuming that buying a second property is a "rinse & repeat" exercise from the first is not a good idea, and ultimately can lead to trouble and/or financial loss.

witchy1066

no I didn't misread the OP , what I was thinking is that they could buy another property and give them time to consider their options,
once they have the property ,

if the couple are not married there is nothing stopping them from owning a property each and living in whichever they wanted as and when , if they can afford to do this , they could also look into the rent a room scenario for the relative ,

but I do think a good broker will be able to advise them without complicating things too much

as far as I am concerned I haven't decided what I am going to do with my present home , I have no mortgage on it ,
and as far as CGT is concerned I believe I have a while to decide before that is an issue, and as most of the money if/when sold will go into converting my new home for mobility purposes , (not needed yet but will be in the future) it may never be an issue,

insurance will not be a problem as it will not be left empty for more than 28 days at a time, once I have moved out completely, I have a friend who will be living in , rent free in return for decorating throughout

sorry OP for digressing from your post,

JimmyTheWig

witchy1066 wrote: »

as far as I am concerned I haven't decided what I am going to do with my present home , I have no mortgage on it ,
...
once I have moved out completely, I have a friend who will be living in , rent free in return for decorating throughout

Whether or not the home's longer term future has been decided, I presume that it is still relevant what is happening to it in the here and now.
From what you have said, in your case, the home that you are buying will become your first home. Your current home will become your second home for a while and will then become a rented out home (whether for money, in return for goods and services or for free I would still think it counts as renting).

The mortgage on your current home would have to reflect that. There is no mortgage, so there is no complication as far as that is concerned. A mortgage on the new home (your new first home) can be a normal residential mortgage with no complications.

In the OP's case, their current home will be their first home (and so can have a normal residential mortgage with no complications) but their new home will be rented out (and the mortgage would reflect that).