Let to buy
What is let-to-buy?
Let out your own property and buy another.
Let-to-buy is when you rent out your existing home and buy a new one to live in. Basically, it involves having two mortgages simultaneously. You change your current mortgage to a buy-to-let mortgage so you can let out your current home, and then take out a standard residential mortgage on the home you're buying.
You can use the equity in your current home to allow you to move to a new home, whilst keeping your existing home as a long term investment asset.
Are you in a rush to move to a new home and don’t want to wait to sell your home then a let-to-buy would be a great option for you? It could be you are struggling to sell your home due to the market condition. Do you want to buy a property with a partner, but want to keep ownership, as you may want to move back in the future, then a let-to-buy would be suitable?
Here are the differences between let-to-buy and buy-to-let
A let-to-buy is where you buy a new home to live in yourself and rent out your current home. A buy-to-let is a purchase that will be rented out.
Before you can rent out your current home, you will need to switch your mortgage, as operating a buy-to-let property with a residential mortgage would breach the terms of your home loan.
What you need to do is change your residential mortgage to a buy-to-let-mortgage.
With ‘let to buys’ Cooper Adams will help you on the mortgage front and advise you on your letting, we can also help you find your new home.