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    • wifefaefife
    • By wifefaefife 14th Apr 18, 12:25 AM
    • 338Posts
    • 1,542Thanks
    wifefaefife
    Buying 2nd Home advice (Scotland)
    • #1
    • 14th Apr 18, 12:25 AM
    Buying 2nd Home advice (Scotland) 14th Apr 18 at 12:25 AM
    Hi,

    Iím looking for advice on buying a second home:

    A house we like has come up for sale but it needs completely renovated. We would like to buy it while still owning our current home (currently with a mortgage of about 40% of the LTV left). Our current home isnít quite at selling standard so we would need to do one up move out do other one up. I understand as it is a 2nd Home we would need to pay the higher rate of stamp duty but claim the difference back if/when we sell current home.

    The for sale property has a lower value on the home report due to the condition of it but it would be worth much more if renovated. Are most 2nd Home mortgage on rates that require say 75% LTV? In reality we would need to borrow more than the house is valued at.

    Regards

    WFF
    I love MSE freebies and comps. Thanks posters
Page 1
    • Pixie5740
    • By Pixie5740 14th Apr 18, 6:51 AM
    • 12,929 Posts
    • 18,582 Thanks
    Pixie5740
    • #2
    • 14th Apr 18, 6:51 AM
    • #2
    • 14th Apr 18, 6:51 AM
    Hi,

    Iím looking for advice on buying a second home:

    A house we like has come up for sale but it needs completely renovated. We would like to buy it while still owning our current home (currently with a mortgage of about 40% of the LTV left). Our current home isnít quite at selling standard so we would need to do one up move out do other one up. I understand as it is a 2nd Home we would need to pay the higher rate of stamp duty but claim the difference back if/when we sell current home.

    The for sale property has a lower value on the home report due to the condition of it but it would be worth much more if renovated. Are most 2nd Home mortgage on rates that require say 75% LTV? In reality we would need to borrow more than the house is valued at.

    Regards

    WFF
    Originally posted by wifefaefife
    You would need to pay the higher rate of LBTT not SDLT but providing you sell your current home within 18 months of purchasing the new home you should be entitled to a refund of the Additional Dwelling Supplement portion of your LBTT payment.

    Is it worth doing up your current home to sell? What exactly will doing it up entail?

    Do you have any deposit to put down to purchase the new property? If, for example, the new property is valued at £100k on the home report that's the value the lender will use. You won't be able to borrow more than £100k because that would be a LTV of over 100% and no lender is offering mortgages with LTV of over 100%. It doesn't matter what you think the property will be worth after your renovations what matters is the current value stated on the home report so if you need to borrow more than that the whole plan sounds like a non-starter unless you (at least) sell your current home first.
    • wifefaefife
    • By wifefaefife 14th Apr 18, 12:16 PM
    • 338 Posts
    • 1,542 Thanks
    wifefaefife
    • #3
    • 14th Apr 18, 12:16 PM
    • #3
    • 14th Apr 18, 12:16 PM
    You would need to pay the higher rate of LBTT not SDLT but providing you sell your current home within 18 months of purchasing the new home you should be entitled to a refund of the Additional Dwelling Supplement portion of your LBTT payment.

    Is it worth doing up your current home to sell? What exactly will doing it up entail?

    Do you have any deposit to put down to purchase the new property? If, for example, the new property is valued at £100k on the home report that's the value the lender will use. You won't be able to borrow more than £100k because that would be a LTV of over 100% and no lender is offering mortgages with LTV of over 100%. It doesn't matter what you think the property will be worth after your renovations what matters is the current value stated on the home report so if you need to borrow more than that the whole plan sounds like a non-starter unless you (at least) sell your current home first.
    Originally posted by Pixie5740

    Thanks for replying. I spoke to our mortgage person today and they said the same as you, would need to sell own property first (which is what I thought but no harm in asking)
    I love MSE freebies and comps. Thanks posters
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