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Property juggling


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Hi,

 

I won't pretend this is an easy enquiry, and I suspect I'll be needing some tax/mortgage advise from a professional, so if anybody knows a good one in the Scottish Central Belt (ideally Glasgow) area, it'd be much appreciated.

 

  1. I currently have a property I let with my brother (£80k at 75% LTV).
  2. I currently have a property I live in with my wife (£98k with 60% LTV remaining).
  3. I want to refinance the property I live in as BTL and remove equity up to 75% LTV. I want to take this money and combine it with other money to buy a new residential property with my wife.
  4. I want to let my old house with my brother and under both our names.

 

Does anybody have experience or knowledge with a complex transaction like this, or a good experience of dealing with somebody who does?

 

Thanks,

Jamie

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Hi Jamie

If you have constant income i.e. rent from your current rental property, the new residential mortgage lender won't consider the BTL mortgage as your expenses. Item 3 should be a straight forward process, in the past I have declared my deposit was came from the equity release from other property, albeit it's for BTL purchase rather than main residence purchase in your case. If I understand you correctly, the challenge is your intention to put your old house (which the title is currently under your sole name only?) under a joint name ownership with your brother, can you two sign a separate agreement rather than involving the Land Registry?

 

Kind regards

Tony

Tony-Ng.jpg

The Glasgow Meet up takes place on the first Thursday of every month, find out more here

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Hi Tony,

 

Hope you're doing well - I will see you on the 2nd!

 

I just phoned HSBC who have said that equity release from BTL is not allowed if the money is earmarked for a residential purchase. Nonsense as far as I can tell. It just encourages me to not swap my mortgage to them. I'll potentially look at a re-mortgage up to £73,000 on a residential mortgage and then switch to a BTL after the fact, or alternatively I'll re-mortgage with another lender who is happy for me to use that cash for a residential purchase.

 

Absolute joke!

 

Jamie

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