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Planning for future house move
Rach273
Posts: 83 Forumite
Apologies in advance if this is long, I will try my best to be concise, but I am struggling with fiding the information I need online and hope that you lovely helpful people will either be able to clarify, or point me in the right direction of a professional advisor.
Current situation;
I live in a 75% shared ownership leasehold with mortgage in sole name and fixed for another 4 years. My partner lives in a freehold property with mortgage in his name also fixed for another 4 years.
The plan;
Ideally we would like to rent out partners house for 6 months or so end of next summer/autumn and he will move in with me to see how we get on under the same roof.
Question 1 - We were both first time buyers using the HTB ISA, will he be able to rent his property without incurring financial penalties from this?
Q2 - Would partner need a new mortgage to do this and thereby incurr early repayment charges?
If things went well, we would then look to sell my property and buy a freehold together, keeping partners property as a BTL.
Q3 - My mortgage is portable, but would I be able to port it to a property in joint names avoiding the early repayment charge or would it require a new mortgage?
Q4 - Would we incurr additional stamp duty for a second home, despite it being my only residence
Q5 - Anything else that I should consider?
The reason that we would like to keep partner's property in the long term is that we are considering emigration in the medium term and so would like to keep a property interest in the UK.
Thank you if you managed to read through all of that!
Current situation;
I live in a 75% shared ownership leasehold with mortgage in sole name and fixed for another 4 years. My partner lives in a freehold property with mortgage in his name also fixed for another 4 years.
The plan;
Ideally we would like to rent out partners house for 6 months or so end of next summer/autumn and he will move in with me to see how we get on under the same roof.
Question 1 - We were both first time buyers using the HTB ISA, will he be able to rent his property without incurring financial penalties from this?
Q2 - Would partner need a new mortgage to do this and thereby incurr early repayment charges?
If things went well, we would then look to sell my property and buy a freehold together, keeping partners property as a BTL.
Q3 - My mortgage is portable, but would I be able to port it to a property in joint names avoiding the early repayment charge or would it require a new mortgage?
Q4 - Would we incurr additional stamp duty for a second home, despite it being my only residence
Q5 - Anything else that I should consider?
The reason that we would like to keep partner's property in the long term is that we are considering emigration in the medium term and so would like to keep a property interest in the UK.
Thank you if you managed to read through all of that!
"It’s all about balance, do you see? Balance is the trick. Keep the balance and—” She stopped. “You’ve ridden on a seesaw? One end goes up, one end goes down. But the bit in the middle, right in the middle, that stays where it is. Upness and downness go right through it. Don’t matter how high or low the ends go, it keeps the balance.”
0
Comments
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1/ Yes.
2/ Maybe, maybe not. Consent to let from existing lender best.
3/ Probably. You port the rate to a new joint mortgage, if permitted.
4/ Yes.
5/ Dunno.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thank you that’s so helpful :j"It’s all about balance, do you see? Balance is the trick. Keep the balance and—” She stopped. “You’ve ridden on a seesaw? One end goes up, one end goes down. But the bit in the middle, right in the middle, that stays where it is. Upness and downness go right through it. Don’t matter how high or low the ends go, it keeps the balance.”0
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