Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I’m hoping some of you experienced property people could offer me some advice as I seem to be lacking direction. I have 3 rental properties in and around Glasgow and I’m not sure what to do next.
Property 1 is valued at around £75,000. The interest only mortgage (6 years left to run) is for £38,500 and is on a tracker at 1.25% monthly interest payment is £40 currently let to good long-term tenants at £450pcm. No early redemption restrictions. Lender is Woolwich – owned it since 1997.
Property 2 is valued at around £100,000. The interest only mortgage (18 years left to run) is for £57,500 at 5.74% light refurbishment mortgage, early redemption period ends this week so free to re-mortgage. Monthly interest payments is £274 currently let to good long-term tenants at £550pcm. Lender is TMW – owned it since Dec 2012.
Property 3 is valued at around £80,000 interest only mortgage (18 years left to run) is for £55,500 rate of 4.29% fixed until Aug 2016 with £3k early redemption penalty. Monthly interest payment is £194 currently let to good long-term tenants at £550 pcm. Lender is TMW – owned it since July 2012.
My circumstances are; aged 45, no dependants and living in my father’s property – so can’t raise any finance on it but will never be homeless! I currently have no other source of income except rent from above properties. I would find it difficult to work full time for an employer due to caring responsibilities. Just successfully completed a law degree.
Although I currently have enough to live on – just, I would like to turn what I have into a business to enable me to live comfortably. Would also like to buy my own property to live in but told I can’t get a residential mortgage without another source of income.
Sorry for being long-winded but basically I want to know what to do next?
Should I sell or re-mortgage and buy some run-down property to refurbish and sell on (but limited by how much could raise re-mortgaging, could I make up shortfall with bridging finance?). Or re-mortgage and get some more deposits for BTL’s (but soon run out of capital for more).
Sure it’s a common problem for experienced property people but it’s a new one for me so any advice gratefully accepted.
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