feasibility

rutar1

Hello and thank you in advance for any advice on the following:


My wife and I are looking to acquire a buy-to-let property (2 bed flat) for £350k.


My mother and I own an investment property with a current value of £450k and an outstanding mortgage balance of £35k.
Hence, we are looking to re-mortgage this and release £70k equity (my mother has granted permission)
The remaining £280k will be a buy-to-let mortgage product (most probably interest-only)


My wife's salary is £32k and I am currently on a career break (last salary was £65k).
The rental income from the property is realistically £1400-1600/pcm.


Can anyone see any issues with this? Any further queries relating to the situation please let me know


Thank you

ACG

You miss off a lot of information, however assuming you are a homeowner then I am sure you should be fine.

I did have something similar where the lender had all sorts of issues about the other owner not benefitting from withdrawing of some of the equity on the existing property but I think that was just them as I placed it with another lender without a problem.

rutar1

Thank you for your response.


To answer your queries:
Yes I am a homeowner (I own half of the residential property with my mother).
My wife also has another buy-to let property (market value £130k, outstanding mortgage 90k)


If theres anything else I should disclose here please do let me know

ACG

Do you live in that property?

rutar1

Yes myself, my wife, my mother live in the residential property (which is under the name of myself and my mother).

ACG

It should be fine then, I would suggest just hecking it with the advisor/underwriter before applying or doing any credit checks (I would if it were for a client of mine) but it should be fine.

_CC_

Beside any mortgage hurdles, the two potential issues I see are

1) It's a fairly measly return
2) You're soon going to be negatively affected by the Budget changes brought in, making it even less attractive (including for your wife's current BTL)

rutar1

Thank you both -much appreciated...


And yes CC I think you're quite correct about the measly returns but I'm thinking of a potential long-term capital growth..