Mortgage - Equity

toughnut

Hi,


I'm looking for help here on behalf of my parents, they have a situation that I'm hoping will be able to be answered quickly.


Here goes, they are both mid 50's, and have about £80,000 left on there mortgage (it has been re-mortgaged once before), their house is worth £210,000 maybe more, they want to borrow £90,000 against the house to buy another property then sale the house, which will then pay off both the mortgage and the re-mortgage and have ~£40,000 left over...


This is also has to be done asap, my questions are, can this be done at their age..(their income between them is about £3,000 - £3,500 a month) and what is the best way to go around it.


Thank you.

JimmyTheWig

Are you saying that they need to buy the second property before selling the first?

toughnut

Yes, they have a opportunity to buy 1 of 4 properties, which are built when you buy them like at a resort if you like, the only issue if they sold the house first and then tried to buy the new home and it was bought by someone else in the meantime...

JimmyTheWig

What are their jobs? (Specifically, is manual work involved?)
When do they plan to retire?
When would they have to retire?

amnblog

If they get some sensible advice there should be ways to do this.

toughnut

My dad is a clockmaker/jeweller, employed in a shop, my mum is a nurse...I would say they plan to retire at normal age maybe 65, there is no set retirement age with the new property

JimmyTheWig

toughnut wrote: »

My dad is a clockmaker/jeweller, employed in a shop, my mum is a nurse...I would say they plan to retire at normal age maybe 65, there is no set retirement age with the new property

I didn't ask in terms of the property. I meant in terms of the mortgage. The mortgage company won't let them take on a mortgage that they were unable to repay before they retired. Which might mean, if the plan to sell went belly up, working past 65. I don't know if that's possible with the occupations listed.

toughnut

Ah right, well there is always that possibility but what if they had a guarantor meaning me, I earn £30,000 as a factory manager I'm 28 and I live with my g/f and we are renting @ £600 a month

questionss

I don't know exactly how guarantor mortgages work, I do know there are very few available now BUT .... Surely they wouldnt let you guarantor it. Their mortgage at 170000 will be nearly 6times your income.

Thrugelmir

Is the new property an outright purchase at £90k?

toughnut

Ok I'll bare this all in mind, it is a outright purchase at £90,000