Property

by -
0 254
owning your home

If you are currently renting your home, you may have thought about how your financial situation would look if you were to get out a mortgage and buy a property for yourself…

There are a number of interesting debates on this topic, here we will delve into some of the key reasons for taking out a mortgage to buy your own home.

Of course every rose has it’s thorn and it’s important to analyse mortgage rates and inflation against your own situation before making a commitment.

1. More Affordable Monthly Payments

By getting a mortgage on your home, you take away the landlord’s cut of your monthly payments. So depending on the term of your mortgage, you’ll often find it works out more affordable than paying rent on a similar property and thus decreases your household bills.

2. You Gain An Asset

What’s more, by taking out a mortgage on your home, you’ll find yourself with a financial asset that you haven’t had before. The truth is, we all need somewhere to live and that means committing our finances towards accommodation, whether we rent or have bought our home, with this in mind it makes sense that we can work towards owning a substantial financial asset while we’re at it.

3. Freedom To Make a House A Home

Owning rather than renting a home, can give you more freedom in how you make your property into a home. When renting a property, there is often structures around what you as a tenant can do to the property, even down to the colour of paint on the walls!

You will need the permission of the landlord to make changes which understandably they will be reluctant to approve. Take out a mortgage on your home, and you’ll have a great deal more autonomy over what you can do, from the wallpaper to the structure, giving you the opportunity to make it work for you.

4. Make Your Property Work for You

Though it’s not always the case, owning your home can give you the opportunity to make money in a way renting a property does not. It might be you could take in lodgers through AirBnb or even though longer term lets – you also have the potential to rent out your property in the future.

Just remember, if you are looking to buy a property through a shared ownership scheme such as the help-to-buy or first-time buyers scheme, there are often restrictions on subletting your property or making structural changes to the property. If this is something you are interested in, make sure you understand the small print before you sign up, talk to an experienced mortgage adviser to find the right mortgage for you and to guide you through the process.

So there you have our 4 top reasons why you should get a mortgage on your home, from reducing your household bills when compared to renting, to providing you with a substantial financial asset that you could potentially make work for you.

by -
0 320
selling parents house

Coming into ownership of a property through the loss of a family member can be difficult to deal with – with all the complications surrounding the inheritance of a home, it can be confusing to enter the world of probate and tax involved in such a sale.

There are a number of factors to consider if you have inherited, or look to inherit, a home. Are you the sole inheritor, and will own the entire property by yourself – or have you inherited joint ownership? You also need to consider your intentions for the home.

Whether you intend on renting, keeping or selling the property – your credit rating is an important factor to consider at every stage of inheriting a home.

Joint inheritance

If you have sole ownership of an inherited property, the process of deciding your next actions can be fairly simple. However, in cases where ownership has been split, choices will have to be made regarding overall decisions on what is to be done with the property.

There is the option of buying out other inheritors – however, this will likely involve putting up large amounts of upfront cash. This will more often than not mean applying for a loan, which is heavily reliant on a strong credit rating.

Intentions for the property

There are various services available depending on your intentions for a property – whether this be living in the home (rules may differ if you live abroad or own a second home), renting out the home (in which case tax may need to be paid on the rental profit, as pointed out on the UK Government’s website), or selling the property.

A high credit rating is important if you are intending to sell an inherited property. A credit rating score measures how likely you are deemed to pay back a debt you owe, and thus affects any future borrowing from a bank or building society. Any creditors that are owed money would likely have priority on any money made from the sale of such a house.

Issues of leftover debt need to be addressed. Any mortgage that remains unpaid from the previous owners of the property will also need to be taken into consideration. Unfortunately a poor credit rating means that you may not be able to take on a mortgage from a previous property and could risk losing the home.

Other concerns

If you do choose to sell and have the necessary requirements, you will also need to consider whether you are required to pay any Capital Gains tax on any profit you may make. If this has not already been addressed in the deceased person’s will or estate documents, you will need to consider how to get a probate property valuation yourself.

Beyond this, it may be sensible to seek further expert advice through a company such as Probate Purchasers, a company which guarantees an efficient sale of probate properties. The firm is a founding member of the National Association of Property Buyers, as Probate Purchasers explains on its website.

RANDOM POSTS

business premises decor

0 46
The appearance of your corporate premises can have a large effect on how well your business fares. This could surprise you... or perhaps it...