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cmp79
| 06-06-2007 08:53 AM |
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Joined: 09 May 2007 Posts: 5 | hey all my wife just got a new job in England and we now have to promptly move south of the Border and find a place to stay. The issue we are currently debating however is whether to let out our current place in order to make some money (in the long term obviously) I spoke to a mortgage adviser yesterday and they suggested that as our house will be worth more money now we should do something called a further extension (i think) where basically we can extract extra money from the bank up to the value of what the house is worth now. e.g. if we got the house for 80,000 and its now worth 100,000 we could now extract 20,000 and use that money to make our next mortgage cheaper. which to be honest if probably the best of both worlds as we dont need to sell to get the extra money the house is worth, and we get to keep the house for letting? anyone got any past experience on this? many thanks |
| paladin | 06-06-2007 10:28 AM |
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Joined: 06 Jun 2007 Posts: 55 My Profile | I have been reading this forum for a while and now have found something I know a little bit about. I have bought, developed sold and rented accommodation for 5 years now and done quite nicely out of it. It sounds as if the mortgage adviser is on the right tracks. If i were in your position I would compare the costs of re-mortgaging with another company and the costs involved in extending your mortgage. You'll probably find that the costs involved in the set-up of re-mortgage will be quite expensive so the mortgage extension with your current provider may be your best bet. Tip: don't get a buy to let mortgage as this will be definitely more expensive than your current mortgage. Provided you keep your payments up to date the banks will not care about who is staying in your house. Remember if you sell the house it will cost you at least a couple of thousand, which will eat into your profits and will also take time. Good luck |
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cmp79
| 06-06-2007 10:36 AM |
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Joined: 09 May 2007 Posts: 5 | cool, yeah the mortgage adviser said that it would cost us £400 to re-value the house in order to get the extension, but that was the only real cost. Yeah she even recommended we do something called, lease consent, or something like that, which basically means as my wife is moving because of a job we dont need to get a buy to let mortgage, not for the first 3 years anyway. Is that right? |
| paladin | 06-06-2007 10:55 AM |
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Joined: 06 Jun 2007 Posts: 55 My Profile | You might save on the mortgage valuation fee. Speak to your mortgage supplier and say that you want to release another £20k, they might advance that money without a valuation report. ps £400 seems a lot. Try shopping about or even negotiate with the surveyor. I've heard of lease consent and your reason for leaving would probably fit into that criteria. |
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cmp79
| 06-06-2007 11:05 AM |
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Joined: 09 May 2007 Posts: 5 | i think its one of these things where i have to accept that value of £400 because its the bank that are going to extend the mortgage and if i want it they have to do it. i will check though, going to get estate agents and letting agents around soon anyway to get an idea of what its worth first. thanks for your help paladin |
| James H | 12-06-2007 10:20 PM |
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Joined: 27 May 2007 Posts: 32 My Profile | I love it when a good idea comes together, especially when it leads to a good plan, based on sound advice. As an ex-banker, I concur with your appraisal of the situation and wish you well when you come south. |
| DW George | 13-06-2007 02:45 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | cmp79 Just reviewing this thread, you said you were considering using a letting agent. I know this will sound a bit obvious try and negotiate down the fee the agent will charge. From other threads and posts it seem to be against our nature to do this but if there wasn't a good profit in this then nobody would be doing it. Bear in mind you could always do it yourself and save a fortune. George |
| fred333 | 06-03-2008 05:12 PM |
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Joined: 05 Mar 2008 Posts: 10 My Profile | I think you have the right idea about the letting out the property. Keep us updated on what happens. |
