Can anyone work the figures for me?

Random_bloke_2

I currently live in a flat that is worth about £140000. I owe about £75000 on the mortgage on the flat.

I would like to buy a house for £290000 and keep the flat. But to be able to afford the house, I will have to rent out my flat.

Does anyone have any advice on how to do this? I basically want to spend about £1500 a month on the house mortgage and have the flat mortgage covered by rent. I have £30000 in savings to put towards the new house.
How much do you reckon I need to rent the flat for so that this will work?
I'm not good with figures and it's getting too confusing for me.

Hope someone can help.

nadnad

Where is the flat? and have you checked out the local rental market to see what something similar is going for? Don't forget you will need to cover things like buildings insurance for the flat, also contents insurance if it will be furnished, you will also need to keep some aside for maintenance so that if anything goes wrong you won't be hit with a bill you haven't accounted for.

I looked on Moneysupermarket - you should be able to get a mortgage for £260,000 in and around £1500 per month - have you budgeted for stamp duty, legal fees etc on the new house or does that come out of the £30k saved?

If you are thinking of using the flat as a long term money maker you could play around with the term to suit your needs. e.g 25 years = £450-500 per month, 10 years = £800 - 900 per month.

Don't know if I've been much help but thats just a few things to think about - my OH and i tought about doing the same with our house when we build our new house but the rental market where we live was not going to give us quite enough to make it worth our while - we would be on a fine line with not enough of a buffer should interest rates rise etc - we decided we would rather sell up and use the profit towards bringing our mortgage down next time.

herbiesjp

To work out what mortgage you would get on the new property we would need your income figure

Random_bloke_2

The flat is a loft apartment in central Manchester. The fees for buying the house would not be taken out of the £30k. I don't really want to make any profit out of the flat rent, just need the rent to cover the mortgage and service charge (current SC is £80 per month).
I'd like to sell the flat when I retire in 20-25 years time to help towards my retirement.

The house would hopefully go to any future kids when I'm gone.

I currently earn about £95k a year.

Thanks for the help so far.