Second Mortgage to buy another HouseA Second Mortgage to Buy Another House
You' re relocating but don't want to move? Try to buy it then....
In Lett-to-Buy, house owners let their home - often a new mortgage on the back - before they use the money to buy a new home to buy for life. Often used by home owners who need to move but either cannot afford to resell their home or choose not to.
When all goes well, Let-to-Buy provides several significant monetary advantages. With Let-to-Buy you can take full benefit of the present environment of high tenant demands and high tenant prices. In 2015, lease price hikes are likely to decline, but most analysts are still forecasting hikes of around six fold the present level of headline rate.
All-to-buy also means that you will own two houses instead of one, so you can take advantage of two many house rises (although you will experience twice as much grief if the residential sector goes into reverse). Luckily he has seen the value of his house in Rotherhithe, south-east London, and has nearly 700,000 in his 800,000 pound riverfront plot of land.
The Lett-to-Buy offer also provides an additional relief. When you buy-to-let with tradition, you must owe capital gains taxes if you make big gains selling your real estate. However, if your leased properties have ever been your primary home - which you will have bought - then you can get qualified for a big discount on your CGT bill when you yours.
In addition to looking for specific rentals, you need to look at how long similar properties have been available to get a sense of how easily it will be to find renters for your present space," says rental specialist Lisa Pollard of LP Surreyettings. When you have a large amount of equities in your up to date possessions and buy somewhere much lower priced, you may be able to re-mortgage your home to lift enough to be a bargainer.
Note that there can be limitations to how much you can afford on your first home. When you reschedule to lend more, you will almost certainly be paying a high registration charge and a higher interest rat. Prepare yourself for hard affordable testing - often referred to as stressed out testing - when you need a new mortgage for the home you're moving into.
But since many creditors only want simple cases, they may not want the additional effort of handling a let-to-buy situation.