Can i do it?

lalman

I am currently renting a flat (sharing with one other person) in London... my current pretax salary is 40k per year and i own a property in my home town which is rented out and covers the mortgage (with income around 1k per year)... i rent it below market value but the tenant is great and i don't need to think about it. The flat in my home town has 30k equity in it.

In a couple of months, when my probation period is over - i would be looking to buy a flat so i don't pay rent.

I have seen a flat close by that is 3 bedrooms for 175k - normally flats of 3 bed go for 250k... so its a good deal however it is in need of complete overall... i am thinking if i could buy it i would rent out the additional rooms that would help with the mortgage.

I would also have a 10% deposit but i would need approximately 25k (on the safe side) to get it up to scratch.

Would a bank lend me the 157.5k for the flat + a potential 25k for repairs etc?

I know its alot of money... but i know i am a very prudent person who could manage the repayments even if the place wasn't rented.

Thrugelmir

Quick answer is no.

Bank will lend based on the lower of the purchase price or the valuation.

Sell your other property and free the equity would be my suggestion. For the notional profit you are making hardly seems worth the trouble.

lalman

pants.

Thanks anyway.