Buying house with attached holiday let. Mortgage?

loveka · 15 July 2017 at 4:37PM

I am looking at a house which has an up and running holiday let with it. It also has a barn which, in the long term, we would want to convert to another let.

Our plan was always to sell up and buy outright. But the market here is very flat at the moment (London commuter town)

The house we want is £365k. We could put a deposit down of £130k.

Current mortgage is £125k. House valued at £475k. Would rent for £1300 a month.

Would I be able to get a holiday let mortgage for the house we want, and rent out the house we live in? I know we wouldn't be able to get a residential mortgage as I don't earn enough and already have one!

We keep missing out on houses because we aren't proceedable, and I don't want to miss out on this one.

I would really appreciate any advice.

Thrugelmir · 15 July 2017 at 4:52PM

loveka wrote: »

Our plan was always to sell up and buy outright. But the market here is very flat at the moment (London commuter town)

Flat in what way. Estate Agents have record low properties on their books to sell. Are people hesitant to or cannot afford to buy at current price levels. That's a different matter. Adjust your selling price to attact offers.

loveka · 15 July 2017 at 5:00PM

We have already reduced it. We have had 3 full asking price offers and one over the asking price. Our sale fell through because the people we were buying from changed their minds. That was only 3 weeks ago so we are not happy to accept a lower offer quite yet. Especially as the market we are buying in is buoyant at the moment. We would be selling low and buying high.

I would rather get a mortgage if possible and rent our house out. If we can't do it we'll wait for the market to balance out a bit.

loveka · 19 July 2017 at 8:41AM

I have been trying to research this myself, and came up with another potential problem!

If I could get a mortgage, would lenders be concerned that there are 2 properties which pay Council tax independently which are on the same title? The annex part is attached to the main house.

Would this be a problem if we tried to port our mortgage if we sold?

Thanks.

amnblog · 19 July 2017 at 9:52AM

loveka wrote: »

I have been trying to research this myself.

Big mistake.

Complex case due to the property that will require Professional help.

If you are serious about this purchase engage a good mortgage broker.

Buying house with attached holiday let. Mortgage?

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