Owning your own home

3K per flat for a combi boiler= £723,000
Leaving £1,928,000 for the management committee to spend on coke and whores?

I knew there was a reason for buying into that management company.

Well, if anyone fancies living in Lyndhurst let me know:

That last one is the overgrown steam that runs through the bottom of the garden.

My family would like the value of 17,742 Aerospokes for it.

How much In real life pounds? 17742 x 50 dorrah Sounds like a lot for it.....

New or second hand spokks?

One Aerospoke is $50, which the current exchange rate puts at £31.

For which you get just under half an acre of Lyndhurst, with a three bedroom house on it.

Roll up roll up!

Bit pricey. 1st dibs on the garden if you will post it to Hackney.

I'd love to move the garden to london if i could

$50. Final offer.

Only if a self propelled mower is included in the sale price.

I will include an upright piano, do we have a deal?

Sorry, I only play pianos of the laying down variety. Out.

Five hundred and fifty large seems like a good deal.

If I got a tenant in my current place and moved in to a bigger place how do they work out what you can borrow? With only one place, it's just an earnings thing right and LTV but what happens when you already have a mortgage? How will that change the loan likelihood and stuff?

Five hundred and fifty large seems like a good deal.

We've been in touch with the planning department and the house can be doubled in size- this is rare in a national park/historic village.

If that was done, to a decent standard, then the place would be worth £750,000.

I reckon the work could be done for 100K, so there is a 150K profit in there for the right person.

Or a lovely house for cheap.

However- finding the person/people who have the cash and the motivation right now is the interesting part of this.

My dad would rather rent the place out for now, but it'd need some work before that could happen- stair lift removed, new carpets, new kitchen etc.

If I got a tenant in my current place and moved in to a bigger place how do they work out what you can borrow? With only one place, it's just an earnings thing right and LTV but what happens when you already have a mortgage? How will that change the loan likelihood and stuff?

Technically you should inform your lender that you are renting the property out. They may want you to change to a buy to let (BTL) mortgage, usually at a higher rate.

You may also want to remortgage for another reason, that being to free up equity as deposit on your new purchase. I can't remember the numbers off hand but there is usually a cap on borrowing based upon likely rental income.

Your rented property then becomes a business proposition and thus outside of any calculations for your new purchase. Indeed, if you can show a positive income from it, it could be used to enhance your income for borrowing purposes.

Cheers WVM.

Technically I should? So I don't have to. Mwuahahahahaa fuck the banks. What happens if they catch me?

Reckon you could explain how the "remortgaging to free up deposit" thing works?

So not sure if this belongs in here of the DIY thread but here goes.

Say you saw a house you really liked and it was within your budget but you wanted to put an extension on, which cost 20k? How would you typically re mortgage to afford this? Could you buy the house with the intention of adding that and the bank would lend you more? Or do you buy the house then remortgage after a couple of years?

I'm only asking because we've seen some lovely Victorian terraces that would look great with a side return off the kitchen to give us more downstairs space.

Do a loft conversion first - you're then allowed to increase and maximise the amount of liveable space by a further 10% (I think), therefore allowing more usable space.

Technically I should? So I don't have to. Mwuahahahahaa fuck the banks. What happens if they catch me?

Some reading on the subject here You may also find that when you apply for a mortgage for your next purchase, the existing mortgage will show up when they do a credit check. If you can't show it's a legit BTL type mortgage it may limit new borrowing. (I don't know this for a fact, more guesswork).

Reckon you could explain how the "remortgaging to free up deposit" thing works?
This is basically freeing up equity in your property. Let's say you bought your home for £100k using £20k savings and £80k borrowing. Some years later the value has gone up as has your income. You then want to raise some cash for some reason (extension, second purchase, etc.). Let's assume the property is now worth £150k and your income would permit borrowing of £110k. You remortgage for anything up to £110k, pay off the outstanding balance of the original borrowing and the remainder is yours to do with as you please.

A lot of landlords were using this to build up a portfolio of property prior to the last slump. Prices were rising so quickly that equity could be released in a very short time frame. Lenders were also falling over themselves to write new business. Those were the days.....

So not sure if this belongs in here of the DIY thread but here goes.

Say you saw a house you really liked and it was within your budget but you wanted to put an extension on, which cost 20k? How would you typically re mortgage to afford this? Could you buy the house with the intention of adding that and the bank would lend you more? Or do you buy the house then remortgage after a couple of years?

I'm only asking because we've seen some lovely Victorian terraces that would look great with a side return off the kitchen to give us more downstairs space.

Probably you would take out a mortgage for the purchase and then arrange additional borrowing come the time you are ready to extend. It may be however, particularly if there's not much equity in the property, you have to fund the extension elsewhere (personal loan or the like) and then increase your borrowing once the extension work has increased the value of the property.

http://lmgtfy.com/?q=increasing+borrowing+mortgages

Some reading on the subject here You may also find that when you apply for a mortgage for your next purchase, the existing mortgage will show up when they do a credit check. If you can't show it's a legit BTL type mortgage it may limit new borrowing. (I don't know this for a fact, more guesswork).

This is basically freeing up equity in your property. Let's say you bought your home for £100k using £20k savings and £80k borrowing. Some years later the value has gone up as has your income. You then want to raise some cash for some reason (extension, second purchase, etc.). Let's assume the property is now worth £150k and your income would permit borrowing of £110k. You remortgage for anything up to £110k, pay off the outstanding balance of the original borrowing and the remainder is yours to do with as you please.

A lot of landlords were using this to build up a portfolio of property prior to the last slump. Prices were rising so quickly that equity could be released in a very short time frame. Lenders were also falling over themselves to write new business. Those were the days.....

"He said he had never heard of anyone being forced to pay backdated extra payments when they were discovered to be letting out a property but said these landlords were almost never discovered."

Cheers. I probably have some more work/saving to do before I get that villa..

This property has come up for sale http://www.rightmove.co.uk/property-for-sale/property-35296453.html

What baffles me is how cheap it is, what is an HMO licence?

EDIT - So It's currently a house share.

HMO licence.

I've been reading online, I wondered if anyone had experience with that kind of thing.

It means the house will need reconfiguring, so possibly removing bathrooms, doors, even walls to turn it back into a proper five bed house plus, by the look of the single photo, it's in poor condition so will need complete redecorating and probably a new kitchen and bathroom.

The price reflects that and you'd need a budget of up to £50k to do the work.