Advice on buying a second property

beckysbobbles1

Hi,

I’m looking for some guidance on buying a second property. Basically I’m looking at buying a one bedroom flat for about £150k. I can put 25% deposit down. I own my own home with a LTV of 40%. The second property will be used for my fianc!’s father to live in.

The second property will be held in joint names with my fianc!. I am trying to work out whether the property would need to be bought as a buy to let or whether it could be another residential mortgage?

The mortgage on our main home is solely in my name. I should imagine from an affordability view, it shouldn’t be an issue to get a second mortgage as we both earn fairly good money and don’t have any debts (other than the main mortgage for me).

Where is the best place to find out some free information on what we could possibly do please?

Browntoa

If you are not living in it and he's paying rent it's buy to let

foxy-stoat

If its in joint names then it should be a regulated buy to let, not sure how far you can bend the rules for In Laws if its just in your name.

beckysbobbles1

I thought the rules used to be if the property is occupied by family in at least 40% of the property then it could be residential?


If it's in joint names then it would be family. Things may have changed though.

foxy-stoat

Who will live in the other 60% of the property then? Its only a 1 bed room flat.

Lenders do not like family in BTL's as it makes it harder for the owner to evicit their own family if they need to.....evicting someone else's family is a little easier I guess.

beckysbobbles1

foxy-stoat wrote: »

Who will live in the other 60% of the property then? Its only a 1 bed room flat.

Lenders do not like family in BTL's as it makes it harder for the owner to evicit their own family if they need to.....evicting someone else's family is a little easier I guess.

The rules used to be a minimum of 40% occupied by family. Obviously it will be 100% family living there.


That's why I thought a residential mortgage would be better. I just need to see a financial adviser as it's best to explain everything to them.

amnblog

You need to engage mortgage broker for this.


There are numerous complications and there have been recent legislation and taxation changes.


I am sure you will find free information, but you need advice, not information.

foxy-stoat

beckysbobbles1 wrote: »

The rules used to be a minimum of 40% occupied by family. Obviously it will be 100% family living there.


That's why I thought a residential mortgage would be better. I just need to see a financial adviser as it's best to explain everything to them.

The rules have always been 100% of the owners living there, not family. I think you are getting confused. You are allowed to have a lodger not a tenant. If you are buying a 1 bedroom flat for Father In Law to live in he will be a tenant.

Speaking to a broker is your next step.

beckysbobbles1

foxy-stoat wrote: »

The rules have always been 100% of the owners living there, not family. I think you are getting confused. You are allowed to have a lodger not a tenant. If you are buying a 1 bedroom flat for Father In Law to live in he will be a tenant.

Speaking to a broker is your next step.

I just spoke to a Broker and I can get a second residential property so it's nice and simple.

foxy-stoat

beckysbobbles1 wrote: »

I just spoke to a Broker and I can get a second residential property so it's nice and simple.

Nice one, if your being truthful then good luck with it, I hope it works out for you.

beckysbobbles1

foxy-stoat wrote: »

Nice one, if your being truthful then good luck with it, I hope it works out for you.

Truthful... what sort of comment is that???