Letting out current property and buying a new one

Posted on 9 June 2009

Hi,

My partner and myself currently own a property bought for £84,000 plus £9,000 loan to cover furnishing and decorating costs. We would like to move to a bigger home in the next year or two but would like to also rent out our current property. Is this possible and if so how can it be achieved? How much money would we need to save to actually be able to progress this. I am in the early stages of researching our options so any advice would be greatly appreciated.

Thanks


In principle, what you would like to do is very achievable, but there are some other factors that you need to consider.  For example, how much equity do you have in your current property.  If you have plenty then you release some equity on this property to find a deposit on the new property and convert your existing one to a buy to let.  Clearly your income will be important on this as will the potential rental income on your current property.

I suggest that you speak to someone who can go through the specifics with you and advise you on the best course of action.

Kind regards

 

Answers provided in response to Ask the experts 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 John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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