question on equity release/remortgage

hello all I am long time reader of this forum and now have a question of my own if it is ok, thanks to all for the useful advice I have found on the forum in the past

My partner and I bought a house over 3 yrs ago for 330k, we did it with one set of our parents. They pay half the mortgage, we pay the other half. Deal was to wait until we found our feet and then buy them out for the remaining half, at the rate the house was bought for at the time (165k)

The house has gone up in value from 311k to estimated 500k so we are looking at our options. We want to change our car, pay off all our debts, put some money in the bank for a wedding and possibly use some of the equity to put down a deposit on a second home as an investment.

We are looking to sell the current house within 12-18 mths and move out of Dublin. Sell the investment as well and buy a proper home.

My sums tell me that we need 276k to achieve what we want to do, but I am unsure about equity release or complete remortgage.

Would anyone have any experience in doing what we are trying to do and what the best way to go about it is?

many thanks

brian mac

So you'd need €276k on top of the €165k you have on your 'half' of the mortgage? Or €276k in total? What are your occupations and incomes?

Sarah

www.rea.ie

yep, we need it on top of the what we would be paying ourselves, we'd we taking on a new mortgage in effect

occupation both IT, combined 120k per annum.

So you'd need a new mortgage of circa €441,000? Plus another mortgage on the investment property? €441,000 is easily achieveable on your incomes but you possibly need to look at the bigger picture. Buying an investment property with the intention of selling it within 12/18 months is going to be a very expensive exercise - Stamp Duty, CGT, estate agent fees etc - also finding a relatively short term tenancy. Would it really be worth it?

Sarah

www.rea.ie

we don't know really Sarah, we could sit tight and not do anything at all, but while we're young without a family and a good disposable income between us a month we thought it might be wise to invest in something if we could. Not sure if its worth it, it was an idea we had really.