Buy new house now, sell old house later.... how?

caprimad

Actually, the house I'm looking at is already vacant - I suspect the previous occupant/owner died or went into a nursing home based on the various disabled fixtures and fittings & general lack of furniture - it's even got a lift [elevator]! So… if I did take a route where I bought before selling my house, I could probably start renovations/moving in immediately. This suits my general lack of patience!

Unfortunately, the work I need to do to my existing property - some of them at least - are kind of essential, e.g. replacing the fence that's completely disintegrated & separates this property from the motorway which is immediately behind it & in a 60ft deep cutting… and replacing the garage doors which exploded in a recent storm. Things like that…

I am actually wondering now if it would be worth getting a Let-to-Buy mortgage, and actually renting this place out. It wouldn't be a major source of income (because tax…) but the rental income would more than cover the mortgage even if I lowball the rent; any repairs (other than the ones above) & the cash release would pay for the new house. I've almost talked myself into it, but I suspect I'd get nailed to the wall if I ever sold it - because I bought in 1995 for less than £50k… so I think CGT would be swingeing…

gazfocus

You could apply for a BTL mortgage on your current home along with the rental valuation from an estate agent but then once you’ve got your new house decide to not rent it and then sell it. That way the mortgage on the current home wouldn’t be taken into account for affordability, however, I’m not sure on the ethical implications of doing so and you’d need to make sure you’re not getting the BTL mortgage with a fixed term.

Obviously the simplest option would be to just sell your house as is and use the equity to buy your new house but I completely understand that may not work if you’ve already fallen for a house and want to snap it up before someone else does.

Bigphil1474

@caprimad CGT wouldn't be swingeing. The CGT consideration kicks in when it is no longer your primary residence, not when you bought it in 1995. If you are thinking of being a landlord , i would seriously recommend you do a lot of research into it first. It's not easy money.