I paid cash for a property that's now let out. Can I raise a mortgage on it, to pay off the mortgage on my residetial property?
Posted on 11 September 2013 by Craig
Hi - I made a cash purchase of a repossessed house (money we had saved for renovations of our own home) because a good opportunity came up - as a result to go ahead with our own homes renovations we had to take out a mortgage (we were mortgage free) - basically what I'm asking is now that time is not critical can I get someone to put a mortgage on the new house purchase and use this money to clear the mortgage on my own home - by doing this I can claim interest payments etc against tax on the let out property. Figures involved are about £40,000.
I can't see why you shouldn't be able to raise the money on the rental property, subject to the rent meeting the lenders standard calculation. The only point that may restrict your options is if you've owned the property for less than 6 months.
Otherwise this should be fairly straightforward to arrange. If you'd like to see what your options are in more detail, then please let me know and I'll arrange for a consultant to contact and go through how we can assist you.
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