Mortgage / Remortgage / House Gift predicament

BatemanLDN

My cousin is selling me his house for £156,000 (the house has been valued at £235,000).
He doesn't want me to sell the house as it has sentimental value and I cannot live in that location. It is currently rented out for £1150 a month.
I have enough deposit to buy this house off of him at £156,000 but would like to purchase a house of my own very soon but if I take on this house I will not have any funds available for a second house.
What are my best options?
I was thinking if it was possible to purchase it for the £156,000 and then remortgage it straight away for £235,000 to gain back money to purchase a house to live in. The mortgage for my cousins house that I am purchasing will be covered by the rental by 120% so I believe it wouldn't have any affect on future borrowing.
Unfortunately my cousin has his mortgage with Nationwide and they do not provide buy-to-let mortgages so it is not possible for him to transfer the mortgage to me or remortgage with them.

Please help, I welcome advice. If there's any more information needed to give advise please post as i'll be watching this very closely - time is of the essence.

ethank

Unlikely anyone would let you remortgage 100% of the property value at £235k. Lots of lenders require you to have had the mortgage for at least 6 months before considering further lending. Best speak with a broker.

Dave_Ham

Everything you want, could potentially be done but you will absolutely need a broker and they will need to be decent broker.

You will not get best buy rates on the buy to let, but will allow you to protect your deposit for your own purchase.

Expect to pay a fee and all of the above is on the assumption you have fair credit files and appropriate employment/self-employment

Best of luck

BatemanLDN

Dave_Ham wrote: »

Everything you want, could potentially be done but you will absolutely need a broker and they will need to be decent broker.

You will not get best buy rates on the buy to let, but will allow you to protect your deposit for your own purchase.

Expect to pay a fee and all of the above is on the assumption you have fair credit files and appropriate employment/self-employment

Best of luck

I have seen recommendations on here with regards to the service you offer. Would you be interested in listening to my situation in a bit more details to be able to quote to represent?

Thrugelmir

If the purpose of the transaction is to avoid a tax liability. Be careful.

Foxy-Stoat_3

If the valuation is reasonable then your cousin if giving you £79K...nice one.

You will need LTV of 75% for a buy to let so you will have £39,000 cash deposit, you should be fine.

Wait for 6 months and remortgage the BTL back to 75% LTV on the true value assuming the lender allows this, pay the early redemption fees and you could have around £59,000 equity to buy another house to live in.

Careful if you ever sell the first house though as when you sell you will have to pay the CGT on the profit. Profit will be at least £79,000 if house prices stay as they are now, not sure how much CGT percentage is so bare that in mind.