Discussion
Bit of advice
My mum needs to take over the mortgage from my dad on the main house, which is currently in joint names, but her earnings aren't very high.
She has two rented houses worth approx £110k each,
She has rental income about £700 per month in total on two houses worth approx £110k each, with no mortgages.
Her earnings from employment are about £8k pa
The main house on which she wants the mortgage is worth about £250k
No loans, no credit card balances, approx £16k in cash.
Total income is around £16k so would it be difficult to obtain a £115,000 mortgage even with £355k worth of equity?
She also has a half share of a villa in Spain, but there's no income from that.
Cheers
My mum needs to take over the mortgage from my dad on the main house, which is currently in joint names, but her earnings aren't very high.
She has two rented houses worth approx £110k each,
She has rental income about £700 per month in total on two houses worth approx £110k each, with no mortgages.
Her earnings from employment are about £8k pa
The main house on which she wants the mortgage is worth about £250k
No loans, no credit card balances, approx £16k in cash.
Total income is around £16k so would it be difficult to obtain a £115,000 mortgage even with £355k worth of equity?
She also has a half share of a villa in Spain, but there's no income from that.
Cheers
She can get the amount she needs out of the rental properties easily. The rental returns are used as the repayment vehicle for the mortgage rather than her earnings.
I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
Dick Dastardly said:
She can get the amount she needs out of the rental properties easily. The rental returns are used as the repayment vehicle for the mortgage rather than her earnings.
I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
Income? I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
Age??
Raising finance, tax implications??
Tread carefully before you say thats easy.
scotal said:
Dick Dastardly said:
She can get the amount she needs out of the rental properties easily. The rental returns are used as the repayment vehicle for the mortgage rather than her earnings.
I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
Income? I work for a mortgage broker that specialises in buy to let finance so let me know if you want further information or someone to speak to.
Age??
Raising finance, tax implications??
Tread carefully before you say thats easy.
Nothing complicated, literally as I state. I forgot to mention there's an endownment of appox £15k that comes out in 2011, that would be used to reduce the balance.
There wouldn't be much in the way of tax implications.
She is buying out the other half of what is her main residence.
The fact that the funding for the buy out is secured on a rented out property is of no concern to the tax man. The interest charged on this borrowing is not eligible for any sort of tax relief on the basis that there is no tax relief on borrowings for the purpsoe of buying your main residence.
Are their any mortgages currently outstanding on the rented properties?
She is buying out the other half of what is her main residence.
The fact that the funding for the buy out is secured on a rented out property is of no concern to the tax man. The interest charged on this borrowing is not eligible for any sort of tax relief on the basis that there is no tax relief on borrowings for the purpsoe of buying your main residence.
Are their any mortgages currently outstanding on the rented properties?
Eric Mc said:
There wouldn't be much in the way of tax implications.
She is buying out the other half of what is her main residence.
The fact that the funding for the buy out is secured on a rented out property is of no concern to the tax man. The interest charged on this borrowing is not eligible for any sort of tax relief on the basis that there is no tax relief on borrowings for the purpsoe of buying your main residence.
Are their any mortgages currently outstanding on the rented properties?
No other mortgages. Unfortunately they were investing in these houses far before I had any idear about tax (more than 10 years ago), otherwise there would be no mortgage on the main residence and full on the rented, but hey ho, there you go, poor tax planning by their former accountant, nothing I can do about that now.She is buying out the other half of what is her main residence.
The fact that the funding for the buy out is secured on a rented out property is of no concern to the tax man. The interest charged on this borrowing is not eligible for any sort of tax relief on the basis that there is no tax relief on borrowings for the purpsoe of buying your main residence.
Are their any mortgages currently outstanding on the rented properties?
Like I said, I'm looking to secure a mortgage in her name alone for 115k based on £8k salary + £8k rental, and based on equity of around £435k + £16k in cash if needed and a £15k endownment due in 2011.
I failed to mention a £12,000 per annum payment from my Dad (which would effectively cover any mortgage)
.....I havent.... 
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