Buy-to-let question

Hello Pauline,

I have a property at the moment and so does my partner, we want to buy a place together but think it’s a shame to sell either one and would like to rent out (plus our current deals are good for the next 3 years at 4.99% and we would have redemption penalties if we sold). We have been in touch with our current mortgage lenders and they are ok with us renting and are only going to charge an admin fee for a consent to let form.

We are worried about applying for a 3rd mortgage as we don’t know how the next lender would look at this. We are able to cover our mortgage payments on our existing properties once rented out and are both professionals on decent salaries too.

Question is, if we put an offer in on a house we like and then apply for the mortgage, would the lender need proof that our current homes are already rented out or is it enough that they are up for rent and we have letting agents on the case and evidence of what the agent is looking to rent them out for. If our current properties aren’t rented by the time we need to complete on the third, would this prevent the lender from lending us the money for this property? Would they insist on our current homes already having somebody in.

Does this make sense?

Kind regards,

Paul

 

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Dear Pauline,
I have a quick question on capital gains tax and was wondering if I could tap your knowledge a bit. I have a buy-to-let flat and have been having a  tenant for the past year . It’s valued at £200,000, but I have a mortgage on it of £100,000. I bought it for £50,000 in 1997. How much CGT would I have to pay if I wanted to sell it now? Will my mortgage be taken into account. Any thoughts will be useful.
Thanks in advance,

Arindam Nag

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