Save my house and buy a [current mortgage] [btl]

Q: Hi,

I owe 25k on my house, and I would say the value of around 140k – 150k (would have appreciated). I want to keep this house for our retirement, but the GF wants to live for now, etc. . Ideally I want to move to a three bed house around 185K. How old was I? I thought I could borrow against, and get a , and borrow the rest for the new house. (no deposit yet, but I have my overpayed for a sum of 20k, I can get back, so I could use some of that for the deposit.

Any thoughts / help would be greatly appreciated.

Matt


A:Thanks. I take it I can just keep the house on until its paid off again (25 years or so), then the rent will be added to my income/pension etc?

Matt


A:you can change your current residence to a .and release some equity to purchase a new house .Because this have been your main residence you can rent it for 3 years and sell without having to pay capital gains tax .
normally requires a 15 to 20 % deposit ,and the rental should be 125% off the mortgage .so if the mortgage was £100 the rental should be £125 .
There is better tax relief on this type off because it has been your main home .

A:Some additional info – I am 32 and the GF 30 (no kids – yet). I overpay my £322 mortgage by £500 each month, so will be mortgage free (if we stay here) in just over two years – This coincides with my fixed term rate finishing, no tie in.

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