Two properties, two mortgages -- > 1 property, 1 mortgage, 2 People!

ChilliBob

Hey guys, 
I'm a little confused about how our situation will play out, and if this is actually relatively simple or not.. 

Current situation:
1 flat worth about 250k, with a mortgage, and an outstanding balance. This is being rented out, and is my partner's. 
1 house worth about 450k, mortgage, outstanding balance, and it's where we live together. It's my house and only me on the mortgage. 

Both mortgages have fixed terms for a little while (late 2021 at earliest. 

Desired future situation 
Both properties sold, a house worth about 850k is owned by both of us, funded by the above two sales, we then get an (offset) mortgage together. 
We're looking to move soonish/nowish, before the fixes would end for sure. 

Is this quite simple in Mortgage terms or complex?! 
Any feedback much appreciated Thanks. 

[Deleted User]

Its easy for mortgage purposes, providing you are happy to pay the early redemption penalties on both and then just buy a house together and get a mortgage together.
Its exactly what myself and my then partner did years ago. 

House 1, will generate money from sale less mortgage, early redemption penalty and fees - Say £100k
House 2, same sale less deductions - Say £250k
So total deposit = £ 350k plus whatever mortgage you can both get together ( after allowing for purchase fees ) is the amount of house you can buy. 

Selling two houses into one can be logistically tricky. Plus you need to be sure tenants are gone. Id remove tenants from rental and get that sold asap as would have no chain and also crack on with selling your house.

Thats what I did. It was a relief when the tenants left and house was sold so I could focus on selling our main house. 

ChilliBob

Thanks, my initial thoughts were that we sell the flat as soon as really, and pay the charges on this small mortgage. I then wondered if I could port my mortgage to another property, and extend it, to avoid fees and then put my partner on

getmore4less

What are the numbers  are the mortgages with the same lender?
You have at least £150k extra borrowing unless you have savings to cover that

Could take over 6 months to get rid of a tenant

Could you do the sale and purchase selling the flat later(even extending that mortgage for a year to raise funds.. 

ChilliBob

Numbers.. Mortgage one about 50k, mortgage 2 about 150k left. Both different lenders, one buy to let, one offset. Yep, combined with that 200k left we'd need to nearly double it. However, we could clear 2k a month in repayment between us I reckon. 

One month contract for the rental, why could it take 6 months? 

getmore4less

ChilliBob said:

Numbers.. Mortgage one about 50k, mortgage 2 about 150k left. Both different lenders, one buy to let, one offset. Yep, combined with that 200k left we'd need to nearly double it. However, we could clear 2k a month in repayment between us I reckon. 

One month contract for the rental, why could it take 6 months? 

landlords cannot terminate a tenancy.
That is one month notice you will take them to court to get them out if they don't leave.
(most are 2 months by landlord?) 
 
 the house board can help with that

The ERC and the need to sell both might mean you will be lucky to make this happen "soon" depending what you mean by soon 

priced well and a cooperative tenant maybe before Xmas maybe soon as early Oct.

dimbo61

It's not one month contract !
The tenant can give the Landlord one month's notice to leave but the Landlord has to give 2 months notice and that was before all the Covid19 restrictions.
So it could take at least 6 months to serve the correct notice and then get the tenant to leave via the courts.
Why the rush ?
How much are the ERC,s and do they go down in the last 12 months of the fix ?
Are you buying 50/50 and getting a joint mortgage for the rest ?
Offset mortgages are brilliant

kangoora

I would also suggest setting up a deed of trust (if not married) as it looks like you will be going in with circa £300k to your partners £200k. If things go bad would you really want to be joint tenants as that would mean a 50/50 split of any equity, £250k each instead of you each getting back what you put into the new house.