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Remortgage or to Sell?

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  • Remortgage or to Sell?

    Hi guys,

    first post on the forum and was hoping for some advice.

    To cut a long story short.

    I own a flat that has a remaining mortgage of £155,000 and an asking price of £260,000. Based of recent purchases in my area i am confident it would sell at this price.

    Ive recently had an offer on a property accepted for around
    £470,000.

    I have 2 options:

    1. Remortgage my existing property and take around £35,000 out as equity to help aide the deposit on the new property. If i clear the majority of my savings account out (approx £60k) and add this equity from the remortgage to it, i will have enough for a decent deposit as well as other fees related to the new property. I would still have around £15k in my savings account after. I should also be able to make around £300 a month off rent for the existing property but would look to plow this back into the property as on a Let to Buy mortgage it, would only be on interest only.


    2. Sell the existing property and use the £100k approx to put down as a deposit on property number 2. This allows me not to touch any of the savings in my bank and reduce my mortgage by a bit on property number 2.

  • #2
    Re: Remortgage or to Sell?

    Basically i would look to keep both properties and pay one of the mortgages down with the spare monies. Your savings wont be earning the rental yield of the property.

    Ged
    http://www.premierexpatmortgages.com
    [email protected]

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    • #3
      Re: Remortgage or to Sell?

      Thanks for the advice Ged, much appreciated.

      Any other opinions would be greatly appreciated.

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      • #4
        Re: Remortgage or to Sell?

        Just that paying the mortgages down will leave you with two assets which is better than one and you could eventually sell one sand have the other as income in years to come so in effect a pension.

        Ged
        http://www.premierexpatmortgages.com
        [email protected]

        Comment


        • #5
          Re: Remortgage or to Sell?

          Option 1 for me. I'd much rather have multiple BTL properties with reasonable equity in each than 1 residential with all money tied up in it.

          Also, chances are that if you find the right BTL property, if thinking longterm, put the new BTL on an interest only mortgage and the profit you make each month could go straight towards your residential repayment mortgage and that could actually help towards lowering the capital in the same way as if you'd put a large chunk towards it in the first place. You can then just leave the BTL in the background paying for itself and increasing in value so in 2/5/10 years you could then sell / remortage that and then reinvest that money in other BTL's or use towards other mortgages.

          Something I've seen myself is that having money split between properties is generally better than all tied up in one place

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