How can I buy a second property in Dubai?

Posted on 20 August 2007

Hi, I owe around £260k on my mortgage but my property is a 7-bed with swimming pool, bar, cinema, etc.  I built the house out of my saving and it has been valued at around £800-900K by a local estate agent.  I now want to buy a property in Dubai.  How would this be posible as I already own a property in the UK and don't want to sell my base (home) in the UK.  Can you help me??


Dear Philip
 
You can raise the capital against your own home by just increasing the mortgage. You can either remortgage to another lender or ask your current lender to increase your loan (this is known as a Further Advance).  You can normally go to around 4 x your income, so if you are earning say £100,000, your total debt would be £400,000, so you could take the left-over £140,000 to Dubai to buy.  Alternatively, if you intend to let out this house and move permanently to Dubai, you can remortgage this property as a buy-to-let, which means that the rental income pays the mortgage and your own income, broadly speaking, is not used.

Depending on your intentions it is also possible to just raise a little money here just to use as a deposit, and get the rest as a mortgage on the property in Dubai.  Charcol is starting a Dubai mortgage arranging service here in the next few months, but until we have that up and running you would need to arrange a mortgage through a bank there.

Regards,

Katie

Category: Buy-to-let, Buying abroad, Remortgaging, Second properties, Self-build, Valuations, Freehold, leases & unusual property

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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