Remortgage to buy the flat downstairs?
Discussion
Should be quick, something has come up today. I’ve done next to no thinking, just come straight here 
I live in a house above a basement flat that may come up for sale as the current tenant is moving out and it sounds like the landlord wants to sell up.
Mortgage left on my house is 100k over 5 years.
My house value is 550k
Expected flat value is 250k
Expected gross rental income is 750pcm
Key things to know are I’m not actually working; I have a limited company (IT contractor) with 100k in it that I’m drawing down as salary and divis, as appropriate. I have no significant savings, no pension, and I’m getting on for being 50.
Given all that, in theory would I be in a position to remortgage my place to purchase the flat? Or some other mechanism? TIA
I live in a house above a basement flat that may come up for sale as the current tenant is moving out and it sounds like the landlord wants to sell up.
Mortgage left on my house is 100k over 5 years.
My house value is 550k
Expected flat value is 250k
Expected gross rental income is 750pcm
Key things to know are I’m not actually working; I have a limited company (IT contractor) with 100k in it that I’m drawing down as salary and divis, as appropriate. I have no significant savings, no pension, and I’m getting on for being 50.
Given all that, in theory would I be in a position to remortgage my place to purchase the flat? Or some other mechanism? TIA
Capcom said:
........afraid not, if you have no income.
That’s why I thought it useful to put in I’m not in contract at the moment; but I am drawing down from my company, which is what I’d be doing if I was in contract anyway. So in my head I have about 3 years-worth of income, at 30k a year, until the company coffers are bare.
bigandclever said:
That’s why I thought it useful to put in
I’m not in contract at the moment; but I am drawing down from my company, which is what I’d be doing if I was in contract anyway. So in my head I have about 3 years-worth of income, at 30k a year, until the company coffers are bare.
You would need to be in contract and receiving into into your Ltd Company.....I’m not in contract at the moment; but I am drawing down from my company, which is what I’d be doing if I was in contract anyway. So in my head I have about 3 years-worth of income, at 30k a year, until the company coffers are bare.
JPJPJP said:
Do you want to go even more “all in” on debt funded UK residential property than you already are?
Actually what I want to do is move to Spain and start a new business, but that’s for a more involved thread. This thread is to help with a different possible option, in a lot of ways something ‘easier’.As a broker I would say yes it is possible, if you draw money from the ltd co you are paying tax and it will show as such on tax comp. there is nothing at all to say when the invoices had to have come in, I have celeb clients who do this all the time...earn when times are good and feed the money out over x yrs.
Many of the lenders would not want personal or business statements and if they did it would not matter.
Could be done on the property below as buy to let and raise deposit on home. Tmw have no min income requirement for the buy to let, just want to know the Sal and divs that you are living off and rental stress test.
What you can borrow on the home would be a multiple of the Sal and divs.
Many of the lenders would not want personal or business statements and if they did it would not matter.
Could be done on the property below as buy to let and raise deposit on home. Tmw have no min income requirement for the buy to let, just want to know the Sal and divs that you are living off and rental stress test.
What you can borrow on the home would be a multiple of the Sal and divs.
Edited by Caddyshack on Thursday 17th September 21:59
Capcom said:
roadsmash said:
Huh? Yes he does.
No he doesn't, he's not earning anything, he's drawing funds from his Ltd company......in the same way as just using savings to pay the bills.Mortgage lenders will want 3 months business bank statements that will (assuming) show no income as he's not working.......
Caddyshack said:
As a broker I would say yes it is possible, if you draw money from the ltd co you are paying tax and it will show as such on tax comp. there is nothing at all to say when the invoices had to have come in, I have celeb clients who do this all the time...earn when times are good and feed the money out over x yrs.
Many of the lenders would not want personal or business statements and if they did it would not matter.
Could be done on the property below as buy to let and raise deposit on home. Tmw have no min income requirement for the buy to let, just want to know the Sal and divs that you are living off and rental stress test.
What you can borrow on the home would be a multiple of the Sal and divs.
Correct.Many of the lenders would not want personal or business statements and if they did it would not matter.
Could be done on the property below as buy to let and raise deposit on home. Tmw have no min income requirement for the buy to let, just want to know the Sal and divs that you are living off and rental stress test.
What you can borrow on the home would be a multiple of the Sal and divs.
Edited by Caddyshack on Thursday 17th September 21:59
bigandclever said:
Should be quick, something has come up today. I’ve done next to no thinking, just come straight here
I live in a house above a basement flat that may come up for sale as the current tenant is moving out and it sounds like the landlord wants to sell up.
Mortgage left on my house is 100k over 5 years.
My house value is 550k
Expected flat value is 250k
Expected gross rental income is 750pcm
Key things to know are I’m not actually working; I have a limited company (IT contractor) with 100k in it that I’m drawing down as salary and divis, as appropriate. I have no significant savings, no pension, and I’m getting on for being 50.
Given all that, in theory would I be in a position to remortgage my place to purchase the flat? Or some other mechanism? TIA
If you've been conracting more than 2 years they'll just base it off your tax returns, more so predicted rent and mortgage cost. I live in a house above a basement flat that may come up for sale as the current tenant is moving out and it sounds like the landlord wants to sell up.
Mortgage left on my house is 100k over 5 years.
My house value is 550k
Expected flat value is 250k
Expected gross rental income is 750pcm
Key things to know are I’m not actually working; I have a limited company (IT contractor) with 100k in it that I’m drawing down as salary and divis, as appropriate. I have no significant savings, no pension, and I’m getting on for being 50.
Given all that, in theory would I be in a position to remortgage my place to purchase the flat? Or some other mechanism? TIA
From memory i think it means the rent should be 1.5x the mortgage.
For a 250k investment, 750pm is wack. Really wack, then add in tax, insurance, repairs etc you'll be making a very small profit.
Rameez-Q said:
If you've been conracting more than 2 years they'll just base it off your tax returns, more so predicted rent and mortgage cost.
From memory i think it means the rent should be 1.5x the mortgage.
For a 250k investment, 750pm is wack. Really wack, then add in tax, insurance, repairs etc you'll be making a very small profit.
I thought wack was good? I’m not down with the lingo...From memory i think it means the rent should be 1.5x the mortgage.
For a 250k investment, 750pm is wack. Really wack, then add in tax, insurance, repairs etc you'll be making a very small profit.
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