Potential new house/mortgage
Discussion
So it looks like we may be moving, I stupidly mentioned I'd seen some nice barns being converted and before I knew it she'd had Purple Bricks round to get a valuation on our house.
I'll set the scene.
We own 3 properties between us, our main home (mortgage in my wife's name) a BTL (in my name) and my parents house which is rented out (no mortgage, my name).
The main home has around 9 years on a mortgage around 150K outstanding, the BTL is only worth about £80K (terrace) not sure how much is owning, maybe 50K and as I said my parents house is mortgage free (probably valued at 200K+).
The house we are looking at is worth about 40-60K more than our main home (depending on how much we can get for ours) so we would need to borrow whatever that difference is plus stamp duty.
We're both 48 years old, wife is a bank manager permanent job for 30 years, me IT contractor/limited company.
She doesn't think she could lend any more money as the bulk of money owed is in her name so it would probably fall to me, but being a contractor causes issues - potentially.
What I am looking for is the best, most cash efficient way of moving and reducing the stamp duty etc if possible, I could afford to put a deposit down on the new property and in the short term pay the two mortgages if that's an option until the current home sold.
Any financial guys be able to advise?
I'll set the scene.
We own 3 properties between us, our main home (mortgage in my wife's name) a BTL (in my name) and my parents house which is rented out (no mortgage, my name).
The main home has around 9 years on a mortgage around 150K outstanding, the BTL is only worth about £80K (terrace) not sure how much is owning, maybe 50K and as I said my parents house is mortgage free (probably valued at 200K+).
The house we are looking at is worth about 40-60K more than our main home (depending on how much we can get for ours) so we would need to borrow whatever that difference is plus stamp duty.
We're both 48 years old, wife is a bank manager permanent job for 30 years, me IT contractor/limited company.
She doesn't think she could lend any more money as the bulk of money owed is in her name so it would probably fall to me, but being a contractor causes issues - potentially.
What I am looking for is the best, most cash efficient way of moving and reducing the stamp duty etc if possible, I could afford to put a deposit down on the new property and in the short term pay the two mortgages if that's an option until the current home sold.
Any financial guys be able to advise?
If you buy the new house with your wife, you will need to pay an extra 3% stamp duty because of your other properties.
To avoid the 3% extra stamp duty, buy the new house in your wife name. Your wife will need to sell her house (main residence) within 3 years of buying the new house to avoid the 3% extra stamp duty penalty.
As your wife cannot borrow anymore money, you will need to take a £60k BTL mortgage out on your unmortgaged inherited property. I am assuming that you're letting out the property you inherited from your parents.
To avoid the 3% extra stamp duty, buy the new house in your wife name. Your wife will need to sell her house (main residence) within 3 years of buying the new house to avoid the 3% extra stamp duty penalty.
As your wife cannot borrow anymore money, you will need to take a £60k BTL mortgage out on your unmortgaged inherited property. I am assuming that you're letting out the property you inherited from your parents.
Freakuk said:
The house we are looking at is worth about 40-60K more than our main home
Is kit really worth moving for such a modest increase, especially when the other properties are well and truly nailed by the new tax regimes?Alternative scenario,
- Sell the BTL
- Improve your Stamp Duty position on the purchase
- Improve your CGT position
- Reduce your borrowings
- Buy and live in a nice house.
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