mel b3 Posted June 9, 2013 Report Share Posted June 9, 2013 hiya fellas , a long story short. my next door neighbour recently passed away and the house is up for sale , id like to buy it but dont really know if i can afford it or not or if it would be the sensible thing to do. ive only ever taken out one mortgage previously , it was on the house that were living in and im mortgage free now , im very naive on these financial matters so would appreciate a bit of advice , im going to see a mortgage advisor that the estate agent has recommended but id just like a little bit of info before i go. i was considering remortgaging this house to raise the cash (a scary thought) but i dont know it that is a sensible or even possible option. the house next door is in a bit of a state but nothing that cant be fixed by me with a little assistance from mates in the relevant trades , the asking price is £85,000 and the agent seems to think that £75,000ish would buy it , theyve already had several offers between £60,000/£70,000 that have been turned down. id like to buy the house and rent it out for a few years until one of the kids were in a financial position to take it on , id like to keep half of the garden for myself . im almost 45 yrs old and my personal income is £30,000+ and i would probably need to borrow most of the money , can i afford it and is it the sensible thing to do ?. the reasons that i would like to buy it are . when i finally peg out my kids will have a house each. the gardens are 30 yrds long and id like to keep half of the garden for growing veg , keeping chickens etc. its a nice enough area with two schools within 300yrds and another half a mile away the kids would like to stay in the area my sister and parents live very close by i would be able to keep a very very close eye on tenants i would be able to vet and choose my neighbour my good lady runs her small business from the garden workshop and she could expand if needed. could any of the pw mortgage experts offer any good advice please (in laymans terms please as im none too savvy on these things) thanks in advance fellas Quote Link to comment Share on other sites More sharing options...
Medic1281 Posted June 9, 2013 Report Share Posted June 9, 2013 Go for it while you still can. Your in a good position, and in 20yrs time when your kids are looking for houses you won't believe you only paid £80k for it. It's a lot of money now but well worth it in my opinion. Quote Link to comment Share on other sites More sharing options...
overandunder2012 Posted June 9, 2013 Report Share Posted June 9, 2013 (edited) go for it you can never have to much property renting it out will more than cover it Edited June 9, 2013 by overandunder2012 Quote Link to comment Share on other sites More sharing options...
team tractor Posted June 9, 2013 Report Share Posted June 9, 2013 I earn 20k and got 100k on mortgage but it was 7 years ago My customer is on 35+ and just borrowed 200k over 30 years plus he's 38 years old . Id do it Quote Link to comment Share on other sites More sharing options...
stavvy Posted June 9, 2013 Report Share Posted June 9, 2013 Get a buy to let mortgage, you'll need approx 25 per cent as a deposit Quote Link to comment Share on other sites More sharing options...
mel b3 Posted June 9, 2013 Author Report Share Posted June 9, 2013 Get a buy to let mortgage, you'll need approx 25 per cent as a deposit thanks for the advice fellas , im not really up to speed with buy to let mortgages , letting it was more to keep the place occupied to be honest until one of the kids was ready to branch out , any revenue raised would just be a lucky bonus , at the end of the mortgage id like to be able to give the houses to the kids. i paid £28,000 for the house im in 15/16 years ago , it was derelict and a bit of a mess , i had it revalued after 3 months(and a lot of graft) and it was valued at £60,000 , i havent the foggiest what its worth now but house prices are just mental. Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted June 9, 2013 Report Share Posted June 9, 2013 Message brown sauce on here. He is ace and sorting out a BTL mortgage for me at the moment. Quote Link to comment Share on other sites More sharing options...
mel b3 Posted June 9, 2013 Author Report Share Posted June 9, 2013 will do buddy , many thanks Quote Link to comment Share on other sites More sharing options...
Amazed Posted June 9, 2013 Report Share Posted June 9, 2013 Get a buy to let mortgage, you'll need approx 25 per cent as a deposit They mean you have to have 20/30 % equity in the property so if you get it cheep then, you get the idea. Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted June 9, 2013 Report Share Posted June 9, 2013 will do buddy , many thanks No problem at all. Good luck with it. Quote Link to comment Share on other sites More sharing options...
leeds chimp Posted June 10, 2013 Report Share Posted June 10, 2013 or ask VIPA on here aswell...sorted mine out with advice Quote Link to comment Share on other sites More sharing options...
AVB Posted June 10, 2013 Report Share Posted June 10, 2013 Personally I would spend any spare money I had on guns, fast cars, holidays, women etc. and leave the kids to fend for themselves. They will get your house when you snuff it. Isn't that enough for them? My kids are getting a decent education out of me and they can split the proceeds of the only house I have between them. Quote Link to comment Share on other sites More sharing options...
al4x Posted June 10, 2013 Report Share Posted June 10, 2013 You are a banker though AVB so not known for looking after others Personally it all depends on your disposable income and what you want to spend it on, get your house valued so you have an idea what it is worth and personally I would look to re mortgage that simply because of the price difference between mortgage products, mention BTL and the costs tend to be a fair bit more, and assuming its worth more then you can borrow without having to put down 30% Quote Link to comment Share on other sites More sharing options...
mel b3 Posted June 10, 2013 Author Report Share Posted June 10, 2013 Personally I would spend any spare money I had on guns, fast cars, holidays, women etc. and leave the kids to fend for themselves. They will get your house when you snuff it. Isn't that enough for them? My kids are getting a decent education out of me and they can split the proceeds of the only house I have between them. my kids are my responsibility , ive looked after them since they took their first breath , i taught them to , read , write , cook , cross the road ,shoot , fish , ride a bike , box , be respectfull and well mannered and pretty much everything else they know , my responsibility is to keep them safe , warm , and teach them about life in every way that i possibly can and help make life as comfortable for them as i can (they are certainly not spoiled) ive more than enough guns and i grew out of fast cars a long time ago lol . my late wife passed away just over five years ago now so when ive gone theyre pretty much on their own and im just trying to make their future a little bit more comfortable . Quote Link to comment Share on other sites More sharing options...
mikky Posted June 10, 2013 Report Share Posted June 10, 2013 Personally I would spend any spare money I had on guns, fast cars, holidays, women etc. and leave the kids to fend for themselves. They will get your house when you snuff it. Isn't that enough for them? My kids are getting a decent education out of me and they can split the proceeds of the only house I have between them. is it a mud hut in delhi Quote Link to comment Share on other sites More sharing options...
AVB Posted June 11, 2013 Report Share Posted June 11, 2013 my kids are my responsibility , ive looked after them since they took their first breath , i taught them to , read , write , cook , cross the road ,shoot , fish , ride a bike , box , be respectfull and well mannered and pretty much everything else they know , my responsibility is to keep them safe , warm , and teach them about life in every way that i possibly can and help make life as comfortable for them as i can (they are certainly not spoiled) ive more than enough guns and i grew out of fast cars a long time ago lol . my late wife passed away just over five years ago now so when ive gone theyre pretty much on their own and im just trying to make their future a little bit more comfortable . Good for you Mel. I didn't intend to have a dig at you. It's just that whilst I am happy to make a degree of sacrifices for my children I am not going to go without any luxuries to make things even more comfortable for them in the future. They can graft like I had to! Quote Link to comment Share on other sites More sharing options...
jasper3 Posted June 11, 2013 Report Share Posted June 11, 2013 Thats a lovely out look to have for the Kids Mel, Quote Link to comment Share on other sites More sharing options...
Mungler Posted June 11, 2013 Report Share Posted June 11, 2013 Life should most definitely be run backwards. When you start off making your way in life after your finish your education, that is the time you need financial support. Chances are, when you get out of education you will have debt hanging off you and that inhibits opportunities or at the very least clouds your judgement whether it be which job / career you go for, buying a property, starting a business or buying into a business. I've got 3 boys and how they are going to get themselves on the property ladder without me first snuffing it.... hence I'm going the B2L route. If they get a property each with 50% equity in it when they hit 21 then that and a decent education is about as much as I can do for them (without snuffing it). Quote Link to comment Share on other sites More sharing options...
100milesaway Posted June 11, 2013 Report Share Posted June 11, 2013 Get a private morgage over 10 years if you can, it will save you a fortune in interest. from Auntie. Quote Link to comment Share on other sites More sharing options...
spinach Posted June 11, 2013 Report Share Posted June 11, 2013 What kind of rental would you get and how long would it take to do and how buoyant is the rental market. Speak to another estate agent and be able to read/see through their hopes. The finance companies are being pretty shy about lending but as far as I can see your making a reasonable business plan. Make it the shortest mortgage you can and make sure you can pay lump sums off against capital . Great plan if you can even if for the choice of neighbour . John. Quote Link to comment Share on other sites More sharing options...
Sir_Adam Posted June 11, 2013 Report Share Posted June 11, 2013 Don't go for the buy to let option it will cost you more monies all ways round! Fees are higher rates are higher, it's just not worth it. If you are mortgage free raise the equity out of your own home and then buy it outright its faster too. Other massive benefit to this is you become a cash buyer and there for have more bargaining power so will get it cheaper. No point in paying over the odds. Where are you based? Don't go for the buy to let option it will cost you more monies all ways round! Fees are higher rates are higher, it's just not worth it. If you are mortgage free raise the equity out of your own home and then buy it outright its faster too. Other massive benefit to this is you become a cash buyer and there for have more bargaining power so will get it cheaper. No point in paying over the odds. Where are you based? Quote Link to comment Share on other sites More sharing options...
LondonLuke Posted June 11, 2013 Report Share Posted June 11, 2013 Don't go for the buy to let option it will cost you more monies all ways round! Fees are higher rates are higher, it's just not worth it. If you are mortgage free raise the equity out of your own home and then buy it outright its faster too. Other massive benefit to this is you become a cash buyer and there for have more bargaining power so will get it cheaper. No point in paying over the odds. Where are you based? Don't go for the buy to let option it will cost you more monies all ways round! Fees are higher rates are higher, it's just not worth it. If you are mortgage free raise the equity out of your own home and then buy it outright its faster too. Other massive benefit to this is you become a cash buyer and there for have more bargaining power so will get it cheaper. No point in paying over the odds. Where are you based? Don't forget you will then pay tax on every penny of any rental income (caveat - except for money spent on estate agents or necessary repairs) if you have no mortgage. Quote Link to comment Share on other sites More sharing options...
mel b3 Posted June 11, 2013 Author Report Share Posted June 11, 2013 Good for you Mel. I didn't intend to have a dig at you. It's just that whilst I am happy to make a degree of sacrifices for my children I am not going to go without any luxuries to make things even more comfortable for them in the future. They can graft like I had to! no offence taken at all mate , ive just always taken my responsibilities as a parent very seriously , ive known plenty of blokes over the years who think that their responsibilities as a father ended with throwing sperm into the woman , my view on life and parenting is very different to those blokes . my kids both had 3 choices when they left school , they either started work straight away , went into further education straight away , or work on the back of my bin lorry , for free ! many thanks for the advice fellas , i had a chat with brown sauce last night and it looks like things are coming together Quote Link to comment Share on other sites More sharing options...
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