Can I remortgage by downsizing without a job?

njbhorn

pjread wrote: »

how long is "less than a year" ? By the time you've sold and bought etc etc you might be rather close, I wonder if "limping on" to 55 then looking at I'd guess needing sub-50k of finance, which you may well be better off raising against the let-out properties (tax relief on interest)

That's just my initial thoughts, if you're somehow already in progress with selling/buying the scenario changes a little and "find a good broker" is the only sane response.

Do you mean I stay as I am until I'm 55 then do all of this. Currently not committed to anything just exploring avenues and don't fancy having to find a well paid job with all the pressure that entails at my time of life. I am 55 in November so that's 10 months to wait.

Many thanks for your reply.

Nigel

njbhorn

Brighty wrote: »

"So I would like to use the equity from my current property approx 700 - 340 = 260K to reduce the mortgage from 340K to approx 190K"

Surely if you sell for 700 and pay off the 340, you're left with 360 not 260, meaning you'd only need a 90k mortgage? Or am i missing something? Could even pay the 90k out of your redundancy payoff and be mortgage free now.

Brighty

Apologies. This is why I'd need a broker can't even do the simple maths!

Am I better converting the redundancy into 140% with my SIPP and then in 10 months drawing out 90k to clear a new buy to let mortgage?

Does anyone know what sort of checks or terms they use for Buy To Lets. One flat is let through an agent and is worth about 350k and brings in about 1800 a month the other is worth about 300k but is let to a son at subsidised rate and not paid consistently so I would suspect this would not be good enough?

Again many thanks for your reply.

Nigel

ethank

Note that if you have been made redundant, only the first 30k is tax free. The remainder will be taxed at your highest rate. You will probably pay 40% tax on the remainder, but redundancy pay is exempt from national Insurance. You may want to consider reducing your tax liability by asking employer to contribute some of your redundancy pay direct to your pension.

njbhorn

ethank wrote: »

Note that if you have been made redundant, only the first 30k is tax free. The remainder will be taxed at your highest rate. You will probably pay 40% tax on the remainder, but redundancy pay is exempt from national Insurance. You may want to consider reducing your tax liability by asking employer to contribute some of your redundancy pay direct to your pension.

I was planning to keep the first 30k of mine and my wife's redundancy and then putting the rest of it into my SIPP thus reducing next years tax liability and gaining the 40% relief on the amount I put in? As I'm 55 in 11 months that works out quite nicely or am I missing something?

Thrugelmir

Annual pension contribution allowance is £50k this tax year. Dropping to £40k next tax year. So this may impact your plans depending on current levels of contribution.

njbhorn

Thrugelmir wrote: »

Annual pension contribution allowance is £50k this tax year. Dropping to £40k next tax year. So this may impact your plans depending on current levels of contribution.

Are these allowances not aggregated over 3 years i.e. You can pay money in over 50k for previous years allowances assuming it's below the total amount allowed?