Best way to go about this

omoabeokuta

Apologies if this is the wrong section. I am new here and wasn't sure if it would be best to post this here or the 'Mortgages & Endowments' forum. Also, please forgive my ignorance on homebuying, mortgages and the like :rotfl:.

I am going to try and give as much relevant information as I can regarding my situation and intentions.

I am currently living in a 3 bed flat with my mother and 2 other siblings. Since my father passed away abroad in 2011, our financial situation has not been great at all and I have been paying the monthly mortgage payments for the house since I finished university in 2013. (about 25k to date).

I am aware that an ex-Council 3 bed flat in our area (Kennington - South London) has a market value of circa £550,000. There is about £120k left to pay on the mortgage.

Taking the above into account my ideal situation would be the following:

- To move the family (or at the very least my mother and sister) to another home using the equity in our current house to pay a large chunk of the buying price (or all if possible).

- To turn our current home into a buy-to-let and rent it out on short term lettings (or long term whichever is more ideal) to generate an investment income.

Bear in mind that my mother is 61 (reaching retirement age) and I am trying my best to get her out of work.

From your P.O.V, is this something that is feasible? If not, what do you suggest?

Look forward to hearing all your thoughts.

Sam

Thrugelmir

Releasing equity still results in debt. Would your income support the required level of indebtedness.

Have you considered the stamp duty bill that you'd be likely to incur.

Cakeguts

There are several things you need to sort out first before you do anything else. First you have to sort out what is likely to happen in the future. Are your siblings going to want to stay in the family home for much longer? If your mum is 61 I would expect the youngest to be getting close to 18 is this correct? Are you wanting to move out to live with a partner? You mum at 61 would be able to buy a retirement apartment. These are much cheaper than a normal one because there is a limited market for them especially one bed retirement apartments. So have a look at that.

Then decide what you are likely to want to do.

Pixie5740

Who actually owns the property? I know you are making the mortgage payments but are you named on the mortgage?

What does your mother want to do?

sparky130a

omoabeokuta wrote: »

Bear in mind that my mother is 61 (reaching retirement age) and I am trying my best to get her out of work.

Eh?! What do you mean by this?

omoabeokuta

Well the idea was to cover the buy-to-let remortgage for this home through the rental. The calculator shows a stamp duty of £17.5k.

What are your thoughts?

omoabeokuta

Pixie5740 wrote: »

Who actually owns the property? I know you are making the mortgage payments but are you named on the mortgage?

What does your mother want to do?

Mother owns the property, it's in her name.

omoabeokuta

Cakeguts wrote: »

There are several things you need to sort out first before you do anything else. First you have to sort out what is likely to happen in the future. Are your siblings going to want to stay in the family home for much longer? If your mum is 61 I would expect the youngest to be getting close to 18 is this correct? Are you wanting to move out to live with a partner? You mum at 61 would be able to buy a retirement apartment. These are much cheaper than a normal one because there is a limited market for them especially one bed retirement apartments. So have a look at that.

Then decide what you are likely to want to do.

The youngest is 23 and I would like to move out and live with my brother (no partner atm )

I will have a look into the retirement apartments option and speak to her about it.

omoabeokuta

sparky130a wrote: »

Eh?! What do you mean by this?

Poor wording. She currently has to work way too much for her age and I want to put a stop to it.

Takeaway_Addict

omoabeokuta wrote: »

Poor wording. She currently has to work way too much for her age and I want to put a stop to it.

Does she want to put a stop to it?

Cakeguts

omoabeokuta wrote: »

Poor wording. She currently has to work way too much for her age and I want to put a stop to it.

What does she want to do? You all live with her so technically there shouldn't be anything at all that she has to do in the home. She should be able to get in from work and put her feet up and watch the telly while the rest of the family do the cleaning, cooking and shopping.