Most effective way to purchase a house

D94ccm1 · 22 February 2020 at 10:24PM

Good evening all,

I'm new here, so please do excuse any newbie mistakes. My partner and I (not married) find ourselves in an interesting position and I would like to see what is the most effective way for us to buy a house.

I am 40 earning about 53K and my partner is 46 earning about 27K.
I do appreciate that none of the add-on costs such as fees etc have been included here, we just want to keep it as simple as possible at the stage and work out what the best course of action would be.
Scenario:

I live in my partner's house. Approximate value is 750K with 150K left on mortgage. I pay her a monthly rent.
I have my own house in another area of the country that I let out for 1100pcm. Approximate value is 350K with 180K left on the mortgage.
We would like to buy a house together and feel that 800K - 850K is probably our maximum.
My partner has three children from a previous relationship. And so are looking to split the cost of house 600/250 etc.
We are looking for the most effective way to move house with regards to mortgaging etc. We would ultimately like to be left being either mortgage free or with myself carrying a small mortgage.
My mortgage term has 18 months to run before the end of its term and hence the early repayment penalty lapses.
Options:
1. Partner sells house, realises about 600K profit and I take out a second mortgage to cover the rest purchase price. Pay the increased stamp duty (This would technically be my second home, but then claim it back after selling my other house after the end of the mortgage term and in doing so avoiding the fee, but before the end of the three year window for claiming back the stand duty.)
2. We both sell our houses now and I take a hit, probably about 5k on the mortgage early repayment charge and then pay most of the purchase in cash before taking small mortgage.
3. Is it possible for my partner to have her mortgage increased and myself added onto it?
4. we wait until I can sell my house realise the capital, and then look to purchase a house where selling only one house is then part of the equation.

Thanks in advance for your thoughts.