Buy to Let/Let to Buy and Buy another home

fessen

Hi all,
It has been my first post on here for a number of years, I've hovered over the forums without logging in.

Please bear with me, it sounds complex and trying to explain it seems difficult but hopefully you guys will know the answers.

After over-paying the mortgage for a number of years.
We remortgaged our own home to release some equity and bought our first buy-to-let last year (25% deposit), which has been successfully rented out.

The buy-to-let has increased in value since we bought it, from the work we had to do and the general house price increases.
What I'd like to understand is how can we release a proportion of this increase from the buy-to-let? From doing some research myself, is it a 'further advance'? As opposed to a remortgage as we are on a 5 year deal, and we wouldn't want to incur any ERC's.

With the money released from this, we would like buy a 'third' home for ourselves to live in. Then, rent out our current home.
Our current home based on the remortgaged value is approx 83% LTV. Although, we had our house valued by 4 agents last week, and it would put the LTV at 78%. (We understand we're not taking into consideration any fees at present).

Obviously it is difficult for forum readers to gauge without figures.

Also, are we exempt from the 3% stamp duty if buying a third home, as it would be our home and the other two homes are effectively bought already?

Thanks a lot for reading, I've tried to explain it as simple as possible.

AnotherJoe

Also, are we exempt from the 3% stamp duty if buying a third home, as it would be our home and the other two homes are effectively bought already?
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No, because you wouldn't be replacing your main residence.

amnblog

You will pay the higher stamp duty land tax.

The mortgage situation will be complex by can be resolved. You will need decent advice.

tlc678910

Why do you want to stretch your finances maxing out on equity gains? Especially at a time of house price and economic uncertainty (Brexit)? If your properties fall in value low equity could mean negative equity making your properties impossible to sell or remortgage.

Can you afford your mortgages if your tenants aren't paying or your houses are vacant and/or require repairs?

Tlc
(p.s. not trying to be alarmist - I voted out)

fessen

tlc678910 wrote: »

Why do you want to stretch your finances maxing out on equity gains? Especially at a time of house price and economic uncertainty (Brexit)? If your properties fall in value low equity could mean negative equity making your properties impossible to sell or remortgage.

Can you afford your mortgages if your tenants aren't paying or your houses are vacant and/or require repairs?

Tlc
(p.s. not trying to be alarmist - I voted out)

We totally agree with all you are saying.
We are in a little pocket of an area locally where they rent instantly and when the houses come up they do sell.
Paying for the mortgages for x many months is fine, obviously long term we wouldn't be able too.

We suppose its more the case of whether it is doable and whether we have the option to do the above.

dimbo61

Expert broker and even then you might not get any equity out of the existing BTL