Posted on 8 March 2014 by Sarah
Hi there, my husband and I are joint owners of a flat in dalston, London E8 currently valued at £440,000. We have £70,000 remaining to pay and the term is 14 years. We currently live overseas (non residents of UK but british citizens) and so rent the property out for £1650 per month. We are moving back to the UK in July this year and would like to keep our London property and continue to let it, but remortage to raise the deposit on a new family home... So we would like a let to buy mortgage as well as a new residential mortgage. Our incomes are approx £40k and £30k and we have no other outstanding debts, two children and an additional £25k saved toward ps the new deposit. We are both 34 years. How much are we likely to be able to borrow? Is it possible for us to buy a property before our return to the UK? If not, is there a term we will have to wait as residents in the Uk before lenders will lend to us? Thanks, Sarah.
Starting with the flat in Dalston, most lenders who look at Ex-Pat cases will goto around 70% LTV which would give us a new loan of £308,000 and a surplus of £238,000 towards the new family home. The rent that you are receiving will also meet the typical lender calculation of covering 125% of the monthly mortgage payment at a notional rate of 5%.
With regard to the new purchase, we would need to know what's happening with regard to your employment when you return to the UK, but if you were tranferring back with your existing employers on the same salaries, then we could be looking at mortgage of around £280,000. This figure could vary as there are some lenders who look less sympathetically at returning ex-pats, and others who who are mor active in this market. It would be possible to buy before you return, but this may limit the number of lenders open to you.
If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you an idea of how we can help.
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