Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
We have 2 properties on joint mortgage. One of them is Residential mortgage (Property A) and other on Buy-to Let (Property B). We were out of the country between August 2010-April 2013. During this period, I was renting out both the properties without changing the mortgages. We moved back to UK last year in April 2013. After our arrival, we couldn’t stay in our residential property due to couple of reasons.
1. The tenancy contract for residential property (Property A) was renewed for one full year just before our arrival
2. The rental contract was finishing on our Buy to let (Property B) mortgage property and it was in the area with better school. (as school was our priority).
So we decided to move into our Buy to Let property but couldn’t change our mortgage from Buy to Let to Residential as most of the lenders require minimum 1 or 2 years record for self employed professional (my wife is a director of the company which we incorporated in October 2013.)
Similarly we couldn’t change our residential mortgage to buy to let as there is not enough equity in the property (i.e. 75% LTV)
As my wife’s company is completing one year of trading in this month, we are in the position to show one year’s account for her as well as my employed income. With proof of income for both of us, we would like to get our mortgages straight i.e. convert our Buy to Let mortgage on residential mortgage (where we are currently living) and sell our residential property (which is currently rented). Similarly, we would like to get some equity (£70-80K) out while re-mortgaging our buy to let and add it to the profit (£70-80K) generated from sale of our residential.
We would like to invest this money into bigger property with good rental return as well as property with extension potential.
I would like to know if I am taking correct steps to come out of this mess at the moment and am I doing correct things towards building my property portfolio?
Are there any better options available for me?
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