Using current property as colateral...possible?

S

sinbadsailor

Registered User
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Hi,

I am currently living in west dublin in an apartment that has risen by about 100k in value since I bought it about 2 and a half years ago.

I am looking to move closer to the south east and commute to dublin and was wondering if there is any way to purchase the new house without having to sell the apartment? I would aim to use the apartment as security for the new mortgage on the basis that it has an increased value and will be rented out to cover it's mortgage.

Do I have any options here??

Thanks in advance for any help
 
Re: Using current property as colateral...possible??

This would depend on a lot of things. As in the value of the property you were considering buying, the amount of money you earn and the amount of rental income you would achieve in the current property amongst other things. The only way you will know for sure is to make an appointment to see a mortgage broker in a financial institution. See how that goes. A financial broker would also be able to give you a fair idea of what to do.
 
Re: Using current property as colateral...possible??

If you did not pay stamp duty (FTB) on the apartment then you face a clawback of stamp duty at investors' rate if you rent it before you've owned it five years. You can only have one PPR so one property would be considered an investment property. As niceoneted said there are a lot of things to be taken into account so I'd second seeing a broker.
 
Re: Using current property as colateral...possible??

Well, the new house value would be circa 450k, the current apartment has a value of 330k with a mortgage of 245k. Rental income would be around 100 p.m I'm thinking. As for salary a joint salary of 85k covers me and the wife.

So if any more details from that I would appreciate it. I was thinking of the broker routebut just wanted to do some background first

Thanks again
 
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