Mortgage / Accommodation Dilemna

cavanman1979

Hi Folks

Need advice on the following;

I'm living in Cavan (4-bed townhouse) with my girlfriend and one other (great) tenant.

Girlfriend also owns an apartment in Ashbourne which is rented out.

We obviously got individual mortgages about 3 years ago before we met each other (2 years ago).

For various reasons (too many to get into), we would like to have our own privacy in the country and are looking into this currently. What are our options? We both have individual mortgages so the chances of getting a joint mortgage are probably non-existent. Now is not the time to sell both properties. We're thinking of renting a private country house and getting another tenant into the Cavan property so that will cover the mortgage there.

We will be no better or worse off financially but will just have our own peace and quiet etc. Are we just kidding ourselves and should we just stay put, grin and bare it? Would the banks even entertain the thoughts of a joint-mortgage?

We both have steady (if there is such a thing these days) full-time jobs and take home two very decent salaries.

Would appreciate any thoughts, opinions, advice or suggestions very much!

3DataModem

First of all "covering the mortgage" is not enough. Even if the rent is less than the mortgage, you are likely to have an income tax liability.

StillWaters

If one or both properties are in negative equity, you haven't a hope of getting a joint mortgage. I don't really understand though, if you want privacy, why don't you just give the tenant notice?

themoneyguy

Negative equity shouldn't have any bearing on getting a new loan - unless you intend to put these properties up as security.

Basically if you can prove that you can afford what you are asking for, there is a chance you could get the new loan.

Marcanthony

cavanman1979 wrote: »

Hi Folks

Need advice on the following;

I'm living in Cavan (4-bed townhouse) with my girlfriend and one other (great) tenant.

Girlfriend also owns an apartment in Ashbourne which is rented out.

We obviously got individual mortgages about 3 years ago before we met each other (2 years ago).

For various reasons (too many to get into), we would like to have our own privacy in the country and are looking into this currently. What are our options? We both have individual mortgages so the chances of getting a joint mortgage are probably non-existent. Now is not the time to sell both properties. We're thinking of renting a private country house and getting another tenant into the Cavan property so that will cover the mortgage there.

We will be no better or worse off financially but will just have our own peace and quiet etc. Are we just kidding ourselves and should we just stay put, grin and bare it? Would the banks even entertain the thoughts of a joint-mortgage?

We both have steady (if there is such a thing these days) full-time jobs and take home two very decent salaries.

Would appreciate any thoughts, opinions, advice or suggestions very much!

The extra costs involved by the property (2nd home tax, property tax ect) not been your main residence and you losing you intrest relief
and if your on a tracker rate .this could also be lost.
without mentioning the additional cost of home insurance.Accountants tax returns (additional earning on your salary, extra tax)

Did you factor this in to the costs of your moving? This could be 000s euro additional each year.

You could go the road of not declaring this info.
However need to make an insurance claim for damage or revenue eventually find out (self assessment). Is it worth taking a risk? I dont think so.

work out how much additional it will cost you to rentout the property and allow for lost rent if a tennant moves out. will it be still practicle?