Afternoon all,

I recently purchased a house which for £110k - paying 5% deposit - leaving a balance of circa £105k. I have done a full revamp of the property and it is now in line with others on the market for £140k.

Please can you tell me, when i come to sell the house, if it sells for £135k for example - would i then be able to use the £30k difference / profit, as a deposit on a larger property - for example a 15% deposit on a £200k house?

Or what if in 3 years time when my current rate expires but i wanted to stay in the property - if i changed mortgage lender and it was valued at £135k with £100k outstanding - would the 30k difference just count as a larger deposit? i.e. 30% ? therefore getting me a better rate?!

Regards.

Hi Bandito,

The answer is YES to both your questions.

Thanks Carlos .........

How would i go about taking Money out of the proerty then when it came to remortgaging - if i wanted to take 10k out of the house for a new car for example? (sorry - 1st thing that came to mind)!

Hi bandito,

When you current deal expires, you would just ask for more money - but remember athough the interest rate would be lower than a personal loan, the loan is now over a lot longer period (assumption), therefore you will be paying a lot of interest to buy your car.

Regards,

Adey

As long as it is below the max LTV i guess?

Yes sorry, a car was a bad example - maybe as a deposit for a buy to let deposit example .........

bandito,

Yes, as long as it complies with the LTVs of the lenders at that time (they have been changing a lot recently!). Also if it is for a BTL purchase, remember you will need a minimum 15% deposit and the rental income must cover at least the monthly interest payments on the mortgage (but more likely 115%).

Regards,

Adey