whats best for me to do? remortgage?

harry20

I own 2 properties, first property i live at (joint owner) with my wife which is worth £180k (£135k mortgage 20 years left to pay) my other property is student rental (im sole owner)worth £90k bringing in income of £9k year (£36k 19 years mortgage left to pay) im making large overpayments per month on this which will see my mortgage end within 4 years. iv got around 8k in savings and due to overpayments im not saving a penny. i really love a property (as rental) which is on the market for £159k thats been for sale for 3 years. im sure id be able to get it close to £140k. if i could sell my rental and use money as a good deposit i would do it tomorrow but Im guessing my rental would be on market for while also and I wouldnt get the £90k for it. so I would like advice on whats best plan of attack? should I just wait few years until my mortgage is payed off on my rental property and be in a good position? or Would re-mortgage work and then have 3 properties? or sell rental for less and purchase next property? or have i got any other options. my salary is £33k + £9k also my wife is on £12k. Any replies will be appreciated as im puzzled with what to do. thanks

Thrugelmir

Why do you want to sell a property that's earning you a 10% yield?


Have you considered the tax implications of overpaying the BTL mortgage as oppose to the residential mortgage first?

harry20

The rental i have is a 4 bedroom house and not in a great location but the other property is very nice and 5 bedroom with an easy conversion to a 6 bedroom. its a risk but im thinking i dont really want to rock the boat. would you recommend waiting few years and saving for a deposit and keeping my rental?

Opinion

I'd be wondering why the property had been on the market for 3 years!

harry20

its large house for its location (only permit parking) and no garden so it would only attract a buyer who was to rent for students.