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2nd Property
A second home purchase can be an excellent solution for many clients. For example, parents may want to purchase a second property close by university for children instead of paying out rent or halls of residence costs.
Elderly parents may want to start succession planning by selling their property to their son or daughter while still residing and maintaining their independence.
A second home may also be used as a commuting home, due to its close proximity to the clients employment.
We can assess the circumstances and work out a lending solution that best meets you and your family needs.
2nd Property – Family residing
A potential wise use of resources for children going to University is for parents to purchase a property near to campus, rather than outlaying the cost for student rent or halls of residence.
The property becomes an investment, and may be converted to a BTL at a later stage, or the son/daughter themselves may purchase from parents once in a position to do so.
This technique may be used to assist son or daughter onto the property ladder in the future as they have little or no income now.
Whatever the case, your goals are our top priority, ensuring you can assist family while still making sound financial decisions. We have the know how and resources to get you the best possible deal.
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2nd Property Purchase – From Family
Aging parents often like to retain their independence and may not wish to move from their family home. .The property they reside in may have little or no mortgage and is willed to go to the son/daughter should the worst happen.
An option many consider is for family to purchase from the aging parents while they still reside, this can be done usually with little or no deposit and the capital raised from the purchase may assist aging parents with lifestyle costs or contingency funds. At this point Financial Planning for long term care maybe worthy of consideration.
It is important that aging parents retain their rights to occupy the property and there may need to be legal consultation and agreements draw up to that effect.
On the other hand aging parents may understand the need to downsize to a smaller property, but don’t want to sell the property open market, and there could be benefit in retaining the ‘family’ home. The aging parents could sell their property to the son/daughter releasing the needed funds to purchase a more appropriate home to their needs.
We take your family circumstances into account sensitively and using all skill and resources we can make a recommendation to meet your goals.
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Commuting 2nd Home
Clients employment circumstances can be complex, the long daily commute can be a real burden to the work/ life balance. The cost of hotels and travel may be as much as or greater than a second mortgage payment!
Families that have a settled home in a desirable location with the children in the right schools are usually very reluctant to make a move.
A second commuting home may well be the answer where the client can live and go to work from through the week and return to the family home at weekends.
We can assess the viability of this option and source the right lender for this more complex arrangement.
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Case Study – 2nd Property Purchase from Family
Mrs E W ( South East ) Held a joint mortgage with her husband on their residential home, with £50,000 on a value of £350,000. Mrs E W had an elderly parent that lived close by in a property worth £250,000 unencumbered.
The Elderly parent Mr E C aged 82 had state pension and no other income and was reluctant to move or sell the home unless it was to the daughter Mrs E W.
With help from MyMortgageDeal.co.uk Mrs E W raised a second property mortgage in her own name and purchased the property from the elderly parent Mr E C for £180,000 with no deposit outlay required as this was gifted by the elderly parent Mr E C.
While the mortgage went through we recommended Mr E C and Mrs E W to a financial planner so that they received expert advice on their will, tax, trust, income and long term care position that Mr E C would need to consider given the receipt of the £180,000 lump sum from the sale of the property. Legal agreements were also drawn up to ensure Mr E C could retain use of the property.
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