A new poster and long time lurker has the following query.
My husband and I are reluctant landlords, but are in the fortunate position of finally owning our PPR.
Our home is quite small, and away from family and friends.
We wish to sell both properties(PPR and rented apartment) and purchase nearer to them.
We have savings and require a small mortgage to complete the move.
We have identified properties that suit us, and are in a position to bid on same having gone sale agreed on our PPR. Any of the three would suit us should we succeed in bidding. We do not want to enter the rental market and wish to purchase asap
The issue we have is the rented apartment. We have yet to serve notice on the tenants that we intend selling. As they are long term tenants, they require a significant notice period. I am unsure how long the apartment will take to sell given that it is outside Dublin.
We want to close on the new home asap.
We do not want to lose the tracker mortgage.
We want to move the tracker and use it as a mortgage for our new home, following the sale of the apartment.
My family have offered a bridging loan to cover the financial shortfall until such a time as the apartment is sold.
Can we pay cash on the closing day of the sale, and draw down a mortgage on the new property in about six months time when the apartment is sold?
There will be no other mortgage on the property at that time.
We can then use the mortgage to repay our family. The bank have confirmed that we can move the tracker but were assuming all transactions would be completed on the same day or before the closing on the new PPR.
We will not have the apartment sold before closing on the new property.
I cannot get a clear answer from the bank, and am reluctant to push the question in case we lose the tracker altogether...if the apartment cannot be sold, we will need to retain the tracker. We are fully tax compliant with the apartment, and are good landlords, but are anxious to exit the market given the recent legislative changes. Releasing the equity would also provide us with a financial cushion and replace some of the savings expended in the new purchase.
Should we just draw down a new mortgage and sacrifice our tracker rate?
Any advice appreciated.
My husband and I are reluctant landlords, but are in the fortunate position of finally owning our PPR.
Our home is quite small, and away from family and friends.
We wish to sell both properties(PPR and rented apartment) and purchase nearer to them.
We have savings and require a small mortgage to complete the move.
We have identified properties that suit us, and are in a position to bid on same having gone sale agreed on our PPR. Any of the three would suit us should we succeed in bidding. We do not want to enter the rental market and wish to purchase asap
The issue we have is the rented apartment. We have yet to serve notice on the tenants that we intend selling. As they are long term tenants, they require a significant notice period. I am unsure how long the apartment will take to sell given that it is outside Dublin.
We want to close on the new home asap.
We do not want to lose the tracker mortgage.
We want to move the tracker and use it as a mortgage for our new home, following the sale of the apartment.
My family have offered a bridging loan to cover the financial shortfall until such a time as the apartment is sold.
Can we pay cash on the closing day of the sale, and draw down a mortgage on the new property in about six months time when the apartment is sold?
There will be no other mortgage on the property at that time.
We can then use the mortgage to repay our family. The bank have confirmed that we can move the tracker but were assuming all transactions would be completed on the same day or before the closing on the new PPR.
We will not have the apartment sold before closing on the new property.
I cannot get a clear answer from the bank, and am reluctant to push the question in case we lose the tracker altogether...if the apartment cannot be sold, we will need to retain the tracker. We are fully tax compliant with the apartment, and are good landlords, but are anxious to exit the market given the recent legislative changes. Releasing the equity would also provide us with a financial cushion and replace some of the savings expended in the new purchase.
Should we just draw down a new mortgage and sacrifice our tracker rate?
Any advice appreciated.
