What is the shortest mortgage tie in?

missminx007

Does anybody know if there is such a thing as a flexible mortgage? We are looking to buy a fixer upper and sell within a relatively short amount of time so want to avoid early redemption charges.
Is there such a thing?

amnblog

Not all mortgages have a tie in.


Be careful, buying a fixer upper and selling for a profit quickly is not like it appears on the telly.

dimbo61

" buy a fixer upper and sell "
First problem would be that you need to own a property for 6 months before a buyer could get a mortgage.
Charges to set up mortgage IE legals, surveys, set up fee etc.
Now if you do buy a cheap property and spend say £10/15,000 on DOING IT UP you then put it on the market for What £30,000 more.
The surveyor from the lender comes along and goes " Nice job love the green walls and peach bathroom, stone cladding " now how much are you selling for £XXX,XXX
Will check recent sold prices in the area "AH" you bought for £YYY,YYY so that is what property is worth.
Tax CGT if you make a profit
Homes under the Hammer has a lot to answer for

maninthestreet

dimbo61 wrote: »

Homes under the Hammer has a lot to answer for

That show is for "Entertainment Purposes Only"....

missminx007

Thanks all for the responses. We would live in the house for around a year before selling and it would be our main home, we would just like to add some value to our investment. I am aware of what is involved, we have done exactly this with the house we are in at the moment and have now sold it. Husband is a builder so would do all the work himself.
I thought you didn't have to pay tax if its your home, I thought that only applied to second properties?

kingstreet

If the property isn't considered mortgageable, there will be a retention of upto 100% of the purchase price set depending on the work needed.

If you do more than two "renovate & flips" a year, HMRC will see you as a professional property developers and instead of being liable for CGT, you'll be liable for income tax on any profits you make.

As a professional property developer, you should seek commercial finance for your endeavours, not attempt to "bend" the residential mortgage process for your ends.

dimbo61

If you buy the property as your Main residence and do work ( build extension or loft conversion ) then you will add value as Husband is a builder! Living on site means you are next to work every morning and cheap security at night.
Living in the property ( building site) for a year or longer means HMRC cannot ask for CGT or income tax