I have 1 property which is mortgaged i have 20,000 equity or there abouts depending on what we could sell it for.this is in the area of the olympic site. ie east london. I want to buy another property outside london to live in and rent the london one out. how would i go about getting advise.?
2006-06-10 23:42:37 · 3 answers · asked by ? 3 in Business & Finance ➔ Renting & Real Estate
First stop is your existing mortgage company. If they aren't keen on the idea, you can shop around and find another mortgage to cover both properties.
Mortgage companies are not very keen on financing rented accommodation because the wear and tear on a property is higher and upkeep can be a problem, so the property 'loses' it's market value (in other words, it doesn't increase as much as it otherwise would).
However, if you have £20,000 equity, that is just about what you would need as a deposit on another property. You will have to do a careful budget to see if it's affordable, I think. Don't forget to include potential upkeep of the rented property!
2006-06-11 04:35:13 · answer #1 · answered by Owlwings 7 · 4⤊ 0⤋
Depends on how much your exisiting mortgage is, ask your mortgage company, possibly buy a property with a friend or partner.
2006-06-11 14:53:33 · answer #2 · answered by foreverchanges 2 · 0⤊ 0⤋
consult with the company you already have the mortgage with for the first property
they already know you and know the details of the first mortgage
2006-06-11 07:19:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋