renting own home and buying one with fella

another

hi there i have a house which i bought in 2001 for 54,000 its now worth 99,000 i want to rent this house out and buy my fellas house which he is renting at the moment which according to local statistics is worth about 150,000. i dont know where to go from deciding i want to do this. i know his landlord would sell it needs lots of work on the house ie new kitchen/bathroom ect and painting and decorating not much money has been spent on the house clearly in the last 8years. i have no deposit. do i need to wait and bide my time? save deposit ? can i use my present home to buy new one with fella?

csgohan4

Bare in mind a mortgage doesn't cover renovation and so will be extra.


Deposit is essential. You might want to speak to a broker to get some advice on what to do for the future.


Have you paid off the mortgage for your first home?

kingstreet

You are planning to let your current home.

Subject to status, you could do a "let to buy" mortgage on it upto (the lower of) 75% of the value, or the mortgage calculated using rent must be at least 125% of monthly mortgage interest assuming about 6% a year.

The funds left after repaying any existing mortgage can then be used as the deposit for the onward joint purchase.

The lender for the new residential should be willing to ignore the let property/mortgage as self-financing otherwise your borrowing power for the new purchase will be reduced.

An independent mortgage broker should be your first port of call for advice on how to piece this together and ensure correct lender selection.

rexmedorum

I would also look around for other places.
If you approach your landlord while the house isn't being marketed that could put you in a weaker negotiating position than is usual.