Posted on 21 August 2012 by jane
We own a couple of properties without a mortgage one being our main residence which is worth 1.2 million we are thinking of buying a flat by getting a mortgage on our main house as we may downsize in the future to this flat - in the meantime we would rent it to pay for it - is this a good investment move? is is easy to get a mortgage as I am 58.
I regret that I can not give you investment advice. What I can do is let you know about some of the areas you will need to consider so that you can make an informed decision whether it is right for you.
The Buy to Let specialist lender BM Solutions has produced an excellent guide for Buy to let investors which I recommend you read:
In summary you will need to consider:
Are you investing for long term investment or a regular income?
Will your rental income cover the mortgage costs and let you build up a reserve to cover on going maintenance and insurance costs?
Do you need to employ a letting agent to manage the property for you?
Are you aware of what expenses are allowable against your rental income for tax purposes?Can you meet a landlord's obligations with respect to running costs, deposit protection, repair and maintenance, health & safety, any local authority licensing requirements?
Is the property of the right type, in a desirable location with good rental demand and will you be able to sell it in the future?
Your age need not be a barrier and I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and tell the consultant the date and title of your question, they will then be able to help you find the right mortgage for your situation.
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 necessarily 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.