Remortgage to a Buy-To-Let

silvercar

kingstreet wrote: »

A BTL remortgage on a former shared ownership property?

Is there a lender that will do that? It's hard enough to get lenders to staircase to 100% on a residential, never mind BTL lending after it's done.

Do shared ownership properties always have the "stigma" (in lender's eyes) of being SO forever? Even when a buyer is buying 100% from a seller who has staircased to 100%, so not really a SO property any longer?

kingstreet

gazfocus wrote: »

My mortgage advisor didn't seem to think it's an issue when buying our new house. What makes you think it'd be difficult? Why would it be any different than buying a house on the open market as I will technically be buying 100% of the house with a BTL mortgage.

There are lenders who won't lend on former SO properties.

As long as your advisor makes sure he establishes your potential lender will be happy with it, I'm sure it will be fine.

gazfocus

leveller2911 wrote: »

Another chancer trying to make a killing out of shared ownership.....

Quote: "Since then, my wife and I's circumstances have changed".

You now have 2 wages coming in and can't be @rsed to save up a bigger deposit for your "forever home" or sell your Shared ownersip house first.

Typical "I want it now syndrome".

This is the reason that keeps cropping up on these threads as a reason to rent out the house.

Shared ownership schemes along with HTB were always open to abuse and this is yet another case of someone abusing the system. They were designed to help people get on the housing ladder who can't afford to buy 100% of a property and not for your property empire.

Heres a novel idea, sell the shared ownership instead of trying to build a property empire on the cheap.

Ok smart @rse so why is it you're thinking I'm trying to make a killing out of a shared ownership house? I bought my share for £62,000 (for 50%) and spent £20,000 on it which I won't get back if I sell due to the stamp duty threshold.

We worked hard to raise a 25% deposit for our forever home and we have a 25% deposit for the buy to let mortgage. If you bother to read properly you see that will I've already stated this above.

I don't see how I'm abusing the system considering is be paying a fair market price to buy the other 50% from the housing association so it's not exactly getting it 'on the cheap' is it??

simpywimpy

Although not shared ownership properties, Ive just completed the remortgage of all my BTLs and despite them being in the same postcode area and the same size,type etc the valuations do vary by upto 15k. It will all come down to the mortgage companies valuation. Until you get that, its all guess work.

I paid £360 valuation on mine that came back at 15k undervalue and I refused the mortgage and lost the fee.

tunnel

gazfocus wrote: »

I bought my share for £62,000 (for 50%) and spent £20,000 on it which I won't get back if I sell due to the stamp duty threshold.
QUOTE]


If that £20k was taken into account your only looking at £1440 "loss" due to the 1% SDT not the full amount

gazfocus

tunnel wrote: »

gazfocus wrote: »

I bought my share for £62,000 (for 50%) and spent £20,000 on it which I won't get back if I sell due to the stamp duty threshold.
QUOTE]


If that £20k was taken into account your only looking at £1440 "loss" due to the 1% SDT not the full amount

Sorry I was meaning that an estate agent said I would only get offers of £125,000 due to the stamp duty threshold. Therefore, would lose the full £20,000 spent on it.

tunnel

gazfocus wrote: »

.
So, my question is, how can I remortgage the house at its true value whilst buying the other 50% off the housing association at the price they've asked for in order to use any equity I've created towards the 25% deposit I need to raise?

gazfocus wrote: »

Sorry I was meaning that an estate agent said I would only get offers of £125,000 due to the stamp duty threshold. Therefore, would lose the full £20,000 spent on it.

Slight contradiction there. Think your after having your cake and eating it aren't you?

If its only worth £125k then that's its true value. I can't see you being able to buy the HA half at £62k and remortgaging your half for a higher figure

leveller2911

gazfocus wrote: »

Ok smart @rse so why is it you're thinking I'm trying to make a killing out of a shared ownership house? I bought my share for £62,000 (for 50%) and spent £20,000 on it which I won't get back if I sell due to the stamp duty threshold.

Simple really, You could stay put and buy 100% of the property which in time will rise in value (as you are fully aware). Regarding stamp duty, thats a red herring and it would make minimal difference and you have a choice when you buy a percentage if you prefer to pay 100% of the stamp duty on the value of your share or on 100% of the property value which can mean you save money when you staircase to 100% if the stamp duty threshold has increased .

We worked hard to raise a 25% deposit for our forever home and we have a 25% deposit for the buy to let mortgage. If you bother to read properly you see that will I've already stated this above.

So nothing to stop you buying 100% of the SO house.

I don't see how I'm abusing the system considering is be paying a fair market price to buy the other 50% from the housing association so it's not exactly getting it 'on the cheap' is it??[/

QUOTE]


You are abusing the system and you know it because you want to buy your "forever home" and keep your Shared Ownership home as a BTL "investment" which is exactly what it would be rather than sell it to someone who would be struggling to get on the ladder. Clearly not what the scheme was intended for.

Buying the remainder 50% off the Housing association isn't the problem its the fact that you want to have it on a BTL mortgage and rent it out for an income. If you lived in it I wouldn't have any problem but your intending to use it as a BTL investment.

Not the same thing is it and you know.Only need to read some of your previous threads to see what you are trying to do. From reading between the lines on your other threads it (I may be wrong) but it seems you bought 50%,spent £thousands on kitchen,Conservatory etc and its market value is lower than you hoped for ,so you would make a loss if you sold it now. But you have found your "forever home" and want it now rather than wait for your Shared Ownership house to rise in value.

QUOTE: "Therefore would lose the full £20,000 spent on it".

Thats the giveaway Gaz ^^^^^^^.

Mandog

I'm interested in this, gazfocus, as we are in a similar (but not identical) situation.

One question: will the housing association allow you to buy the rest of the SO property on a buy-to-let mortgage? They are not obliged to sell to you and, as leveller2911 so bluntly pointed out, they are meant to be social housing.

We never tested this point but I tried and failed to get advice on it. It would have been the only way I could have staircased to 100% by myself. We've ended up transferring half the equity to my partner, who will raise the funds elsewhere, leaving no mortgage on the formerly SO property. Though we're only partway through this complex process so it may yet come to grief.

I struggled for over a decade to buy/rent my flat - it was difficult on a middling single income. I overpaid the mortgage and did without holidays and luxuries. Yes, I'm more comfortable now due to having a partner- that may or may not last. We're buying the place at the current market rate, which presumably the HA can put towards building new social housing.