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Is it possible to completely purchase and rent a co-owned property? | Buy to make

Q I currently live in a co-owned property that I co-own with my wife. We have a 25% share of the assets worth £ 82,000. The total value of the property when purchased in March 2021 was approximately £ 328,000. I bought it on a 2.2% fixed rate 5-year mortgage and overpaid up to 10% of the total mortgage without imposing an overpayment penalty.

Is it possible to repay with 100% ownership as buy to let? If so, what are the steps? I made a small amount of money through inheritance, so I can repay my mortgage for a share of the real estate we own (the rest of the mortgage is about £ 50,000). What if I’m going up the stairs to 100% when applying for a buy to let mortgage to a bank?
UM

A Unless there are exceptional circumstances, under the terms of a co-ownership rental, if you own only part of it, you cannot let go of your home (you usually stay with you) Although you are allowed to have a person). However, if you climb the stairs to 100%, you will own the property completely and you can rent a house to someone you like.

To be able to climb the stairs to 100%, you will have to pay to be evaluated by an independent Rics qualified expert. Then you need to calculate if the inherited money is enough to cover 75% of the valuation, or if you need to increase your current mortgage to be able to fully buy your home. I have. If the numbers are added together and, if applicable, the mortgage lender agrees to increase the mortgage, you can buy the final share of the home. Once that is done, you can license the property with the permission of a buy-to-let mortgage or the current lender. However, please note that if you switch to a buy-to-let mortgage, you will have to pay an early repayment fee to repay your current mortgage before the end of the five-year fixed rate period.

But what I don’t understand is why you want to switch to a buy-to-let mortgage, if possible. If you leave your house to a tenant, where do you plan to live? It seems to me that a simpler and wisest course of action would be for you and your wife to use the money you inherit to buy more stock in your home and stay there.

Is it possible to completely purchase and rent a co-owned property? | Buy to make

Source link Is it possible to completely purchase and rent a co-owned property? | Buy to make

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