Complex mortgage problem - shared ownership, buy-to-let, alternative loans

Grubsy

Background
In 2008 I bought a 25% share of a shared ownership property (total value £260k).

In 2010 I bought a house for £400k which my parents are living in with a mortgage. This is nearly paid off with £20k left.

In 2012 I inherited a property worth around £200k and am renting it out for around £15k a year.

Problem
We want to move back with family (rent-free) in the next year. We also want to rent out our shared ownership property (which we own 25%). However under terms of shared ownership we cannot rent out privately without 100% ownership.

Now the shared ownership flat is worth £410k and I need to raise funds for 75% of that value which is 307.5k (London prices!) - if we owned 100% we could rent it out for around 15-20k per year.

Mortgage
I have recently quit my job and started up a small business so I have no recent payslips to speak of. My wife earns £35k per year. I have around 20k cash deposit. This means we can only get a mortgage of around 140k max when I need 307.5k.

Is there any bank or loan which would allow me to use my assets or other income to help buy the remaining share of my shared ownership property?

It seems ludicrous that maximum mortgages are calculated solely on payslips, especially as I have a large number of assets and income from rent.

G_M

Raise capital via a BTL mortgage on the property your parents live in.

(I assume you are complying with letting requirements for this property?)

bigadaj

G_M wrote: »

Raise capital via a BTL mortgage on the property your parents live in.

(I assume you are complying with letting requirements for this property?)

That's going to be difficult with family, wouldn't see many lenders going for that.

What the OP needs is a time machine to go back a decade. Self cert mortgages aren't around any more and track record of self employment is normally needed. In theory mortgages on buy to let products are independent of earnings apart from often a requirement to be a homeowner and minimum £20k income. But you need 25% deposit and show 120% of mortgage payments from rent payments.

You c an gear up teh inherited property to 75% which would give you £150k, but with family in the other property you'll struggle to raise money on that. The prospective yield on your current shared equity property sounds poor so to me doesn't like a good prospect in simple commercial terms.

Probably best speaking to a mortgage broker to see what they can come up with.

Grubsy

G_M wrote: »

Raise capital via a BTL mortgage on the property your parents live in.

(I assume you are complying with letting requirements for this property?)

I'm not sure we can get a BTL mortgage on that property.

Technically it's supposed to be a primary residence for us but my parents are just living in it without paying rent.

We have enough savings to finish off the mortgage on it (£20k).

Pixie5740

It is a complex situation so your best bet might be to speak with a mortgage broker.

pcgtron

You can't let a shared ownership property without 100 percent ownership as you have found out. You could possibly get a regulated btl on the house your parents live in but then you might need to charge them something.
The other option is to sell your 25 share.

lindsaygalaxy

Why not just sell the SO property, you get a good chunk of money and can live mortgage free and someone else gets a step up onto home ownership.