southest Posted January 4, 2010 Report Share Posted January 4, 2010 Happy New Year to you all! I'm new to the forums and, having had a good read through, have decided to join the discussion since this looks like a friendly and helpful place to be! I'm on the verge of my first property venture and am looking for any helpful advice that you can give regarding finance options. My situation is as follows: I own a two bed apartment that was built two years ago on a new Persimmon estate. The purchase price was £115,000 and we took on an £85,000 mortgage. My wife and I are now looking to move to a house in a different area, which is on the market for £110,000 (it needs some work...) We don't realistically think that we'll be able to sell our apartment on the open market for the price we paid, and are unwilling to take the hit financially. We live in a very desirable rental area, and have come to the decision that we would rather hold onto the apartment, remortgage, take on a tenant, and maintain it as an investment, whilst purchasing our new home. In order to purchase our new home, we need to remortgage the apartment (our fixed rate mortgage comes to an end in May) and release some equity. Obviously depending on the valuation, we'll take as much or as little as is necessary. That side of things isn't a problem. What I'm interested in is the options that are available mortgage-wise for either property. I don't really know where to start. Should we get a BTL mortgage on the apartment, and simply transfer our existing mortgage to the new property, since the values are similar... or take out a new second mortgage? Somebody mentioned let-to-buy mortgages, but I couldn't find much information on them online. Additionally, we've considered incorporating a business with my brother, and selling our apartment to the company as a joint venture. For it to be in the company's name, would we have to take on some kind of specialist mortgage? Any thoughts greatly appreciated. With best wishes, Gavin. Link to comment Share on other sites More sharing options...
Selkirk Posted January 5, 2010 Report Share Posted January 5, 2010 Hi I would have to advise you to see an independant mortgage broker on this one, they'll be able to get you the facts you need and should be able to advise on all the options you are looking at. Your loan to value is going to be high in terms of what's on offer for a BTL mortgage and there are some meaty fees attached to these deals at the moment. Personally I wouldn't go into business with anyone - no arguments then. Hope that helps Cheers Selkirk Link to comment Share on other sites More sharing options...
semiproinvestorTim Posted January 11, 2010 Report Share Posted January 11, 2010 Hi Gavin, There are a few options out there when it comes to BTL mortgages. Like Selkirk said it's worth chatting to a mortgage broker who is a bit canny about doing creative deals. I use these guys http://www.trafalgarsq.co.uk who are really helpful and have their ear to the ground. They'll give you good advice even if you don't want to go through them for the mortgage. PS I also agree about going into business with family - there is always a chance that somewhere down the line someone will feel a bit hard done by no matter how hard you both try. It's not worth risking your relationship... ps Happy New year to you too! Tim Link to comment Share on other sites More sharing options...
John00 Posted July 1, 2010 Report Share Posted July 1, 2010 Matco Tools is an excellent option for financing. The financing options involve low and reasonable costs that offer new businesses a low start-up cost. Minuteman Press is another excellent option for financing with similar options for new and existing businesses. You can also go for regional banks or credit unions. Some of the options of financing are bank loans, secured finance or asset-based finance, unsecured finance, receivables finance or factoring, short term finance, medium term finance, equity financing, direct financing, mezzanine financing, debt financing. Link to comment Share on other sites More sharing options...
Jack00 Posted July 2, 2010 Report Share Posted July 2, 2010 A commercial loan is a short term loans for businesses to serve their daily needs. It requires an asset as collateral for the loan and has a relatively high interest rate. Such a loan involves high risk because if companies have trouble generating cash to pay for daily operations, there may be no guarantee they can generate enough cash flow to repay short-term commercial loans. Some of the options of financing are bank loans, secured finance or asset-based finance, unsecured finance, receivables finance or factoring, short term finance, medium term finance, equity financing, direct financing, mezzanine financing, debt financing. Link to comment Share on other sites More sharing options...
Melboy Posted July 2, 2010 Report Share Posted July 2, 2010 This thread goes back to January so I am fairly certain that the OP has long gone to their choice of finance option. Mel00 (!) Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.