I’m currently selling my home without much luck. Selling as I want to leave London and move closer to parents. Should the house fail to sell I am considering letting it out and buying another but in order to do that, would you be able to help me with the following queries please:
A. If I was to do this, what is the value of the house the bank would use? My agent would be able to attest that the market value is 500k minimum. This is because we have done works to the property. Would the bank accept this? House bought for 415k
B. If so, could I extract the difference between 550,000 and the amount of capital I have put in the house already (about 40-50k), or would it be any capital I have put in so far?
C. My salary is also higher than when I got this original mortgage, so could I use the 4.5x multiplier on the difference to boost my buying power?
D. Just also wanted to confirm that the £5,000 car allowance I get can be used towards the multiplier as well?
E. Property would fetch rent of £2,250 per month, so would that be available to me to multiply as well?
Please also let me know of other things I may not have considered. I am aware of the tax issues.
A. If I was to do this, what is the value of the house the bank would use? My agent would be able to attest that the market value is 500k minimum. This is because we have done works to the property. Would the bank accept this? House bought for 415k
B. If so, could I extract the difference between 550,000 and the amount of capital I have put in the house already (about 40-50k), or would it be any capital I have put in so far?
C. My salary is also higher than when I got this original mortgage, so could I use the 4.5x multiplier on the difference to boost my buying power?
D. Just also wanted to confirm that the £5,000 car allowance I get can be used towards the multiplier as well?
E. Property would fetch rent of £2,250 per month, so would that be available to me to multiply as well?
Please also let me know of other things I may not have considered. I am aware of the tax issues.