Buy second property or rent?

jamels2

Hi all,looking for some advice. I have one flat that ive decided to leave let out as a form of pension. I am looking for my own place as I'm getting too old to stay at my parents. At the moment I have consent to let and a 60k mortgage. The flat is worth 180k. I have a mortgage offer for 128k (Inc 2k fee) to change to a buy to let mortgage. This would leave 30% equity and release about 65k for a second property. Monthly payment would be £270 I/o covered by £750 rent.

With the changes to buy to let id have to pay the extra 3% on a second purchase, although I still wouldn't pay any more tax as my rental income won't change as I plan to live in the second property.

My other option is to just leave the mortgage as is and keep paying it off, at the same time renting somewhere privately for myself. I'm just wondering what other products would recommend out of the two options I have explained.

Thanks for any replies.

Pixie5740

My advice is the same as before, extend the lease on the existing property (if you haven't done this already) before you start farting about with buying another property.

PersianCatLady

My other option is to just leave the mortgage as is and keep paying it off, at the same time renting somewhere privately for myself
I must be misunderstanding this as to me it sounds strange that you would own one flat and let it out and at the same time privately rent another flat to live in. Why wouldn't you just live in the flat that you own???

Pixie5740

PersianCatLady wrote: »

I must be misunderstanding this as to me it sounds strange that you would own one flat and let it out and at the same time privately rent another flat to live in. Why wouldn't you just live in the flat that you own???

You're missing about a dozen previous threads.

PersianCatLady

You're missing about a dozen previous threads
There you go then I said I was misunderstanding it.

ognum

jamels2 wrote: »

Hi all,looking for some advice. I have one flat that ive decided to leave let out as a form of pension. I am looking for my own place as I'm getting too old to stay at my parents. At the moment I have consent to let and a 60k mortgage. The flat is worth 180k. I have a mortgage offer for 128k (Inc 2k fee) to change to a buy to let mortgage. This would leave 30% equity and release about 65k for a second property. Monthly payment would be £270 I/o covered by £750 rent.

With the changes to buy to let id have to pay the extra 3% on a second purchase, although I still wouldn't pay any more tax as my rental income won't change as I plan to live in the second property.

My other option is to just leave the mortgage as is and keep paying it off, at the same time renting somewhere privately for myself. I'm just wondering what other products would recommend out of the two options I have explained.

Thanks for any replies.

OP your first post on this issue was in 2012, you must have had hundreds of replies, what was wrong with the replies over the last four years?

mary.f

it depends on what you have in the bank and how much you are able to spent on the property. like our neighbors were interested in getting best garages and they spend on the concrete garages while on the other side, we were not able to make such a huge investment.

jamels2

Several reasons I think why I am still asking the same questions... first of all I have been living with very few expenses so each month that goes by I am saving more and more (or paying the mortgage down). However I'm getting a bit old to be living with family now! They don't complain though as I live as independently as I can.
Secondly, after the initial advice I decided to sell the flat and it was on the market nearly 6 months, after finally getting an offer I accepted only for the buyer to pull out.
I finally decided to take it off the market which made the tenant happy so then I started the buy to let mortgage enquiries, they have now made me an offer.
So now I can either take that offer and have 65k to play with and buy another property or leave things as they are and rent.

AdrianC

jamels2 wrote: »

Secondly, after the initial advice I decided to sell the flat and it was on the market nearly 6 months, after finally getting an offer I accepted only for the buyer to pull out.

Was that when they discovered the lease was unmortgageably short?

jamels2

It may have had to do with the lease but I was offering the flat for sale with a new lease which was included in the agreed price.