Property Options

Gravitywayne

Hi,

I'm looking to purchase a new home with my partner (currently we do not live together) in the £250k/£300k region with a mortgage.

I currently own my home, value approx. £145k.  I also own a small commercial property value approx. £45k which provides a rental income per month.

I am considering renting my home to offset the Mortgage payments on the new property, as well as the rental income from the commercial property.

We would like to do this sooner rather than later, however saving for a deposit on a new property could take 2 - 3 years.

I am considering selling my commercial property to cover the deposit on the new home and any other fees e.g. solicitor, surveys, stamp duty etc. However, I'm wondering if this is detrimental to the success of my investments vs waiting 2-3 years to pay off the deposit by my own hand (savings) thus retaining the commercial property and subsequent income. 

Any thoughts would be welcomed.

Thanks
Wayne

Brie

You are already a landlord so you know a bit about renting.  I don't know, however, how much stricter it is for renting a home as opposed to business premises.  I suspect there are extra requirements so I would suggest you read up on all of that before making a decision.  And I presume you own your home outright?  I know lots of people rent a home that still has a mortgage on it and then get caught out because they don't get permission from the mortgage provider and also thinking that the rent will cover the mortgage and are surprised when a tenant decides not to pay their rent.

ReadySteadyPop

Brie said:

You are already a landlord so you know a bit about renting.  I don't know, however, how much stricter it is for renting a home as opposed to business premises.  I suspect there are extra requirements so I would suggest you read up on all of that before making a decision.  And I presume you own your home outright?  I know lots of people rent a home that still has a mortgage on it and then get caught out because they don't get permission from the mortgage provider and also thinking that the rent will cover the mortgage and are surprised when a tenant decides not to pay their rent.

Tenant demand is also falling I hear?

ExEstateAgent

I would sell the house and use that towards the new place. Depending on what your partners contribution is you could get some agreement drawn up as to how the proceeds are split if you split. 

SDLT_Geek

Gravitywayne said:

Hi,

I'm looking to purchase a new home with my partner (currently we do not live together) in the £250k/£300k region with a mortgage.

I currently own my home, value approx. £145k.  I also own a small commercial property value approx. £45k which provides a rental income per month.

I am considering renting my home to offset the Mortgage payments on the new property, as well as the rental income from the commercial property.

We would like to do this sooner rather than later, however saving for a deposit on a new property could take 2 - 3 years.

I am considering selling my commercial property to cover the deposit on the new home and any other fees e.g. solicitor, surveys, stamp duty etc. However, I'm wondering if this is detrimental to the success of my investments vs waiting 2-3 years to pay off the deposit by my own hand (savings) thus retaining the commercial property and subsequent income. 

Any thoughts would be welcomed.

Thanks
Wayne

If you are buying in England, there would be an extra 5% stamp duty land tax if you retain the existing home.

saajan_12

Gravitywayne said:

Hi,

I'm looking to purchase a new home with my partner (currently we do not live together) in the £250k/£300k region with a mortgage.

I currently own my home, value approx. £145k.  I also own a small commercial property value approx. £45k which provides a rental income per month.

I am considering renting my home to offset the Mortgage payments on the new property, as well as the rental income from the commercial property.

We would like to do this sooner rather than later, however saving for a deposit on a new property could take 2 - 3 years.

I am considering selling my commercial property to cover the deposit on the new home and any other fees e.g. solicitor, surveys, stamp duty etc. However, I'm wondering if this is detrimental to the success of my investments vs waiting 2-3 years to pay off the deposit by my own hand (savings) thus retaining the commercial property and subsequent income. 

Any thoughts would be welcomed.

Thanks
Wayne

Entirely depends on
- how the investments are performing? as a % return
- how much are your current living costs vs the interest on the purchase? 
- SDLT amount on purchase (& return on this) 

Albermarle

Gravitywayne said:

Hi,

I'm looking to purchase a new home with my partner (currently we do not live together) in the £250k/£300k region with a mortgage.

I currently own my home, value approx. £145k.  I also own a small commercial property value approx. £45k which provides a rental income per month.

I am considering renting my home to offset the Mortgage payments on the new property, as well as the rental income from the commercial property.

We would like to do this sooner rather than later, however saving for a deposit on a new property could take 2 - 3 years.

I am considering selling my commercial property to cover the deposit on the new home and any other fees e.g. solicitor, surveys, stamp duty etc. However, I'm wondering if this is detrimental to the success of my investments vs waiting 2-3 years to pay off the deposit by my own hand (savings) thus retaining the commercial property and subsequent income. 

Any thoughts would be welcomed.

Thanks
Wayne

Becoming a residential landlord is not something to take on lightly. You should research all the rules and regulations ( and changing legislation) in some detail before going ahead.