Best way to raise 60K?

CHIHUAHUA

Hi gang need some help please!
My partner and I are in process of a 155K cash purchase of an old house that needs about 80K spending on it. We plan to turn it into a holiday let when done up. The purchase money is made up of redundancy money and inheritance. Neither of us are working and hope to not have to return after 30 yrs in NHS!
We also own our own home outright (worth around 300K) and also a small terrace that is rented out for £600 a month also no mortgage and worth around 160K
We have no other income and have been living off our savings.
We don't really want to sell our house if poss and wonder if we can raise a mortgage or loan on the rented out terrace to pay for the work on the new house and our living expenses until the holiday let is up and running.
We don't think the house we are buying is mortgageable as needs new roof, and completely gutting and also as we are not in paid employment it gets complicated.
Our other option is to sell the rented out terrace which we would prefer not to as its a regular income and the tenants have been there for 14 yrs and are great.
Any help much appreciated. Thanks Chi

Thrugelmir

In essence a no goer. Not least that have no income and the property is unmortgageable. If you wish to undertake a business venture then you'll need to raise your own capital.

GMS

You could arrange development finance on the new property and refinance when completed. This is expensive though.

Refinancing the rented property may work. Speak to a broker as many lenders are broker only.

CHIHUAHUA

Thanks - its looking more and more like we'll need to sell the rented terrace to raise the capital.

GMS

CHIHUAHUA wrote: »

Thanks - its looking more and more like we'll need to sell the rented terrace to raise the capital.

Why? Have you explored refinancing options?

CHIHUAHUA

We're wondering now if it's worth keeping the rented house as it may be difficult to raise a loan or mortgage for 60K based on such a low income of only £600 per month. If we could borrow that much against the rent it would be worth considering but from looking online it looks to be difficult and expensive.

GMS

You need a broker for a Buy to Let mortgage.

£600 per month would be sufficient to support a mortgage of 60k.

CHIHUAHUA

Thanks any chance you could give me any idea of cost and term of a BTL mortgage for that amount and whether that would be the most we could borrow against the house? Seen some online calculators but not had a mortgage for a few years so am a bit confused about it. We need to factor in a contingency plan for the work at the new house and also living expenses.if it were possible to keep the rented house it would be good for us and the tenants

GMS

Far too many variations to give an answer to that.

You need to speak to a broker. They will assess your needs and find you the most suitable product.

CHIHUAHUA

Thanks GMS will do

getmore4less

CHIHUAHUA wrote: »

rented out for £600 a month also no mortgage and worth around 160K

Gross yield only 4.5% not that great,

ok got great tenants when was the last time you put the rent up?

Should be able to get a loan against that renal income and equity.