Buying a second residential property

[foucauld 0]

Good morning all.

Just wondering if anyone can give me some advice on how to proceed as I cannot find anything to read that relates to my situation.

I live in (4 days) and own a property up north with a mortgage left of £86000 on it (cost £105,000. However, I work in London (6 days) and currently pay mates rate on rent whilst I'm down here. 

I was thinking of buying a small studio or something down in London to be more comfortable. I am also fortunate enough to be overpaying my mortgage by £1000 a month. I have a small savings pot for emergency funds but nowhere near a deposit. 

What is the best way to proceed? Should I release equity in my northern property for the deposit or save for an actual deposit? I read it is possible to have two residential properties as I would reside in both. 

Any hints, tips and tricks?

[julia urquhart 172]

You can have as many residential properties as you like but you will pay 3% SDLT on the second (and subsequent ones) as well as double council tax bills etc. As long as this is all better than renting then why not?

You need to speak to a mortgage broker about the feasibility of 2 residential mortgages as I imagine your total borrowing will only be the same as if you had one house and will be based on your income. I'm not sure looking at your figures whether you will have enough money to do this, unless you have a huge wage,  as I imagine the London property might be pretty pricey.

Get all your figures together, including likely price of London home and ask a broker.

Good luck

[EvolutionBlogger 80]

I don't think you can release equity on your northern property. There's not enough equity there. Your only bet is to save up for a property deposit in London

[foucauld 0]

Thanks guys. 😊