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Residential to BTL Remortgage - not sure if scenario is feasible!
rav151
Posts: 1 Newbie
Hi All, first time posting!
This is the scenario. I own my property with my daughter, current residential mortgage is about a 40% LTV. I reside at the property with my son and daughter. My son and daughter want to buy a larger property since they both have well paid jobs. I would be moving with them permanently, but was hoping to keep my property and rent it out since it is in a commuter town with a decent rental market. I would want to convert the residential mortgage to a BTL, and release some equity to essentially buy my daughter out and remove her name from the deed. They would then use this money in addition to savings and such as a 30% deposit to get a 70% LTV mortgage which has already been approved. I am still working full time and earning in excess of 25k. I was wondering if I would be able to get a BTL mortgage without having my name on another property that is residential. I would not be contributing to the mortgage or running costs of the new property. The rental income should be sufficient to release equity such that the new BTL is 75% LTV. The transactions would essentially have to be done simultaneously. Anyone know if this sounds feasible, any lenders which might consider it or if its better to just stick to a traditional Let-to-Buy scenario.
Would appreciate any insights / advice!
Thanks
This is the scenario. I own my property with my daughter, current residential mortgage is about a 40% LTV. I reside at the property with my son and daughter. My son and daughter want to buy a larger property since they both have well paid jobs. I would be moving with them permanently, but was hoping to keep my property and rent it out since it is in a commuter town with a decent rental market. I would want to convert the residential mortgage to a BTL, and release some equity to essentially buy my daughter out and remove her name from the deed. They would then use this money in addition to savings and such as a 30% deposit to get a 70% LTV mortgage which has already been approved. I am still working full time and earning in excess of 25k. I was wondering if I would be able to get a BTL mortgage without having my name on another property that is residential. I would not be contributing to the mortgage or running costs of the new property. The rental income should be sufficient to release equity such that the new BTL is 75% LTV. The transactions would essentially have to be done simultaneously. Anyone know if this sounds feasible, any lenders which might consider it or if its better to just stick to a traditional Let-to-Buy scenario.
Would appreciate any insights / advice!
Thanks
0
Comments
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Yes, you can, subject to the right Lender.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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