What mortgages do i need ?!

[SimonTheSailor]

Getting myself in a pickle here - i'm sure the answer is simpler than i think.

My mother has recently moved into a care home - need to sell her flat to pay for care home fees ultimately.

As its on the outskirts of greater London the rent it can achieve is quite good compared to the cost of the property (its a 3 bed maisonette above a shop).
Its value is around 250K , the rent might be 1700/1800 per month.

So its got me thinking about buying it from her to rent out.

I own my house outright - value around 300K. Need to borrow some money out of it for part of the deposit.
Is this a remortgage , a new mortgage, a life time mortgage ?

If I got a mortgage on the new purchase that would be a Buy to Let correct ? Or a Let to Buy ?

[ferret50]

May be an to have a chat to Sarnie, other brokers are available.

[Killer2005]

Standard remortgage on your home, BTL on your mother's. Sarnie and Caddyshack are the brokers on here.

Side note, what type of shop is your mother's flat above?

[Sarnie]

SimonTheSailor said:

Getting myself in a pickle here - i'm sure the answer is simpler than i think.

My mother has recently moved into a care home - need to sell her flat to pay for care home fees ultimately.

As its on the outskirts of greater London the rent it can achieve is quite good compared to the cost of the property (its a 3 bed maisonette above a shop).
Its value is around 250K , the rent might be 1700/1800 per month.

So its got me thinking about buying it from her to rent out.

I own my house outright - value around 300K. Need to borrow some money out of it for part of the deposit.
Is this a remortgage , a new mortgage, a life time mortgage ?

If I got a mortgage on the new purchase that would be a Buy to Let correct ? Or a Let to Buy ?

You'll need a residential mortgage on your property to release funds for the deposit and then a BTL mortgage (not a LTB) on the property you want to buy. Forget that the property is owned by your Mother, thats probably making things slightly confusing for you, it's a straight forward BTL purchase.

The shop below the flat may make things more difficult for you though....

[eyeslikealemur]

Sarnie said:

The shop below the flat may make things more difficult for you though....

Why?

Thanks.

[TownIdiot]

eyeslikealemur said:

Why?

Thanks.

A lot of mortgage providers don't like lending on that type of property.

[SimonTheSailor]

Thanks everybody - the shop is currently a vehicle graphics shop. I know about if it becomes a food outlet that lenders don't lend on it, i.e kebab/fish n chip/cafe,etc.

[SimonTheSailor]

And if you're currently 55 does this limit the mortgage term available to you ?

[Sarnie]

SimonTheSailor said:

And if you're currently 55 does this limit the mortgage term available to you ?

For the BTL mortgage no, it's no issue.

[Sarnie]

SimonTheSailor said:

And if you're currently 55 does this limit the mortgage term available to you ?

For the BTL mortgage no, for the mortgage against your property for the deposit, yes, it will limit the term