Sorry about length of this, great if you can read it !
We are in a good D4 location. Although the house has character we have space constraints. A beautiful larger period family home for sale around the corner on a nicer road has been reduced in price in line with the downward trend in the market, and we feel we should pounce in the next month or so.
We have been monitoring this house over 12 months, viewed it a couple of times and it has dropped 30% (we believe there are no big faults except a north east facing garden, which may be a compromise).
I believe the owners are not dependent on a sale but clearly now they have had enough and want to get it sold. Originally for auction for well over 2 million and now close to 1.6. We would be trading up by around 300K.
OK BUT however, we would *really really* like to keep our existing home for at least 18 months if possible to give us time to assess if we can find a way to keep it long term (e.g. when the market picks up again). We would hate to be saying in one years time "God, if only we kept that house somehow, by renting it out for a couple of years, and then sold it later on " etc. etc.
We feel we can achieve this, although it may be complicated.
Here is the situation: We have access to c. 300K immediately through various means, we also have a property (a 1-bed cottage worth 500K with a 200K mortgage) also in D4 ,using a different mortgage bank to the residential home.
However we want some different arrangement perhaps, other than a Top Up/Buy to let against that property because if I'm not mistaken all these things are based on your Income/ability to repay. We have average to strong salaries but not mindblowing, or 6 figure sums. This is 1.3 -1.4 million Euro of a top up we're talking about here so that would surely be a non-runner or not feasible (??). (that's even though the LTV would remain just about less than 80%)
Instead of buy to let/top-up on the investment prop, is there any way we could pay the 10% Contracts purchase part ourselves on this house around the corner using our own financial resources, and setup a limited company, get a Commercial 80 to 85% mortgage, interest-only for 2 or 3 years, lodge 100K or 12OK to the company current account (like a Bond ?) and simply allow the interest only mortgage payments to withdraw from that company account ?
Yes we know we would have to take the financial hit directly on that 120K lodgement for those interest only payments. But we don't have to worry about our incomes or jobs as I see it with this arrangement. The goal is to separate our regular jobs and any associated risk with that from this transaction.
We would then plan to switch the "family home" (from a legal standpoint) to the new home etc. etc., I'm not sure what way that would work.....
After a year we would perhaps intend to sell the D4 investment cottage mentioned above and feed the profit from that into reducing the commercial mortgage on the new home.
At that stage we end up with 2 period properties in D4 (one being our home) and then maybe wait for market to pick up again while renting out our original home (or sell it if we have to !)
Any ideas folks ? That's my idea above anyway !
Anything welcome.
many thanks.
We are in a good D4 location. Although the house has character we have space constraints. A beautiful larger period family home for sale around the corner on a nicer road has been reduced in price in line with the downward trend in the market, and we feel we should pounce in the next month or so.
We have been monitoring this house over 12 months, viewed it a couple of times and it has dropped 30% (we believe there are no big faults except a north east facing garden, which may be a compromise).
I believe the owners are not dependent on a sale but clearly now they have had enough and want to get it sold. Originally for auction for well over 2 million and now close to 1.6. We would be trading up by around 300K.
OK BUT however, we would *really really* like to keep our existing home for at least 18 months if possible to give us time to assess if we can find a way to keep it long term (e.g. when the market picks up again). We would hate to be saying in one years time "God, if only we kept that house somehow, by renting it out for a couple of years, and then sold it later on " etc. etc.
We feel we can achieve this, although it may be complicated.
Here is the situation: We have access to c. 300K immediately through various means, we also have a property (a 1-bed cottage worth 500K with a 200K mortgage) also in D4 ,using a different mortgage bank to the residential home.
However we want some different arrangement perhaps, other than a Top Up/Buy to let against that property because if I'm not mistaken all these things are based on your Income/ability to repay. We have average to strong salaries but not mindblowing, or 6 figure sums. This is 1.3 -1.4 million Euro of a top up we're talking about here so that would surely be a non-runner or not feasible (??). (that's even though the LTV would remain just about less than 80%)
Instead of buy to let/top-up on the investment prop, is there any way we could pay the 10% Contracts purchase part ourselves on this house around the corner using our own financial resources, and setup a limited company, get a Commercial 80 to 85% mortgage, interest-only for 2 or 3 years, lodge 100K or 12OK to the company current account (like a Bond ?) and simply allow the interest only mortgage payments to withdraw from that company account ?
Yes we know we would have to take the financial hit directly on that 120K lodgement for those interest only payments. But we don't have to worry about our incomes or jobs as I see it with this arrangement. The goal is to separate our regular jobs and any associated risk with that from this transaction.
We would then plan to switch the "family home" (from a legal standpoint) to the new home etc. etc., I'm not sure what way that would work.....
After a year we would perhaps intend to sell the D4 investment cottage mentioned above and feed the profit from that into reducing the commercial mortgage on the new home.
At that stage we end up with 2 period properties in D4 (one being our home) and then maybe wait for market to pick up again while renting out our original home (or sell it if we have to !)
Any ideas folks ? That's my idea above anyway !
Anything welcome.
many thanks.