We have just completed another project with one of our clients, who came to us when they couldn’t sell their property in time to be able to buy their dream home.
Mount Road, Bath, is a beautiful 3 bedroom bungalow. However, current demand in the area is for city centre flats, with buy-to-let investors fighting for student and young person accomodation, rather than family houses. In this case the owner wanted to move to an even more idyllic countryside retreat, but hadn’t managed to secure a buyer in time to move things along fast enough.
After talking to them about their situation (and seeking tax and legal advice), we realised that they had enough capital in their property that meant that they would be able to re-mortgage their current property and still buy the new property and in enough time that they won’t be subject to April’s 3% rise in stamp duty!
Quickly we got our mortgage broker on the case, who found that Mount Road could be re-mortgaged onto a buy-to-let mortgage, with 20% capital left in. This would then free up enough capital to put down a 70% deposit on the new property and secure a mortgage which could easily be paid off within 10 years at a monthly cost of no more than previously being paid at Mount Road (therefore the client was no worse off).
We then arranged for Mount Road to be put on the rental market, getting electrical safety, gas safety and fire safety checks done as well as advising on painting and small repairs which needed to be completed. The property has been marketed with Upad. In this case the client wanted to be very hands on and therefore is conducting viewings themselves.
Once let the client will be making circa £300 a month profit.
In seeking advice and looking at the situation on an individual basis for the client we found a solution that worked really well for them!
Property can be manipulated to suit you no matter what your situation. Dreams are achievable, and in this case the client has a solution which means that they have another side business which they are really excited to run. This may not be for you, but it is another option to consider.
NC Real Estate is all about making property practical. We find solutions to problems and that is what is exciting about property, it can be that solution. We always recommend that you take legal and tax advice as well as speaking to us as working with a good team will make sure that you reach your goals quickly and efficiently. It’s definitely worked well here.
NC
