Further investment

oldfaithful

Hi i have recently put an offer in on a 1 bed flat and 2 bed maisonette in need of general maintenance. I Have all the finances in place ready to complete and do the neccesary work to upgrade. The plan is to then rent out and have the mortgage paid through the rental income. Is it then possible to go on and purchase further property using the value of the previous property kind of like a remortgage ?

colin.land

Hmm.. well.. I'm from South Africa and yes it was possible there.. In reality diong a remortgage is getting money from the bank and using that money, the banks money, to pay for another property..

It's called proper property investment..

Just be careful of the tax implications..

moneysavinmonkey

oldfaithful wrote: »

Hi i have recently put an offer in on a 1 bed flat and 2 bed maisonette in need of general maintenance. I Have all the finances in place ready to complete and do the neccesary work to upgrade. The plan is to then rent out and have the mortgage paid through the rental income. Is it then possible to go on and purchase further property using the value of the previous property kind of like a remortgage ?

yes, BUT this is assuming that your previous property has a value greater than the mortgage... not necessarily a assumption you should jump to in the current market climate.

Conrad

If your current mortgage deal has a tie in penalty this will be a disincentive to remortgage in which case the only way you will be able to release equity is via further advance from the cyrrent lender.

Your timing is about as bad as it gets by the way! I take it you are aware of the credit crunch?
Are you aware there are 8m properties with negative equity in the US and that UK lenders are reducing the maximum loan to values as they anticipate prices will drop here to?

Yesterday C & G set a new 90% maximum. Intelligent Finance will do the same today. Every day this is happening.

I would wait before investing any more if I were you.