Need some advice/idea's

[MrMayoNessie]

Hi there,

God this is so long. If you can bear with it I would be most greatful.

Just some background. Me and DW and DS1 and DS2.

We have our 3 bed house up for sale here in Scotland, been on the market for a year, valued at 90K Originally on at offers around 87K now dropped to offers around 83K. Still no offers/viewers, thinking now of renting it out till market starts to pick up again (if it ever does)!!!!.

We have no mortgage. Also have about 80K in savings (from prev property sale).

The house we have at the moment isn't the one we wanted to live in, we bought it in 2004 as investment and rented it out till the tenant moved out in 2009 then we moved in done up to sell and move on.

We are looking for 4-5 bed house, one thats got a room that we can call a "playroom" that you dont have to tidy up every night (currently living room is playroom(nightmare)), so we can close the door and not worry what a mess it is. Also has bedroom each for the boys one for us and extra room/s for visitors. A house for the rest of our lives.

Our dilemma is what houses we have shortlisted would be best for us, we have three possibles, any advice ideas would be appreciated:

These are the options:
1:
5 Bed new build detached house at £190K, small development built 2005, Garage has been converted to 5th bedroom (would use this as playroom, house also has enough space at side for double garage (something I want/wish for), been on market about 12+ months.
Would look to offer abt 180K

2:
4 Bed Red Sandstone det house, built abt 1900, been used as council social/offices, offers over £159K, been on and off market for last two years, looks like deals have broken down. Have the property report (still have them in Scotland) Needs a lot of work (builders) and need to change consent back to residential, would make a real statement house. Loads of gardens at the back for Garage etc
Would look to offer 135-140K then 30-40K rebuild
Total £180K

3:
Plot with planning permission for substantial family detached home at offers over £97K, again been on market for about 2 years at same price so maybe could knock them down for cash.
Look to offer 80-85K
Not sure how much it will cost to build a house on it??? Advice PLEASE

What do we do, my initial plan to finance is:

Remortgage current house to Buy to let at 66% property value (think thats all the banks are doing at the mo for the good rates)which would give us about £60K capital. Would do as Interest Only as will sell as soon as market improves thus clearing debt and extra 20-30K injection
DW is working while I am SAHD so she could get a £40K mortgage.
BTL on the 60K is about £300 a month, should get about £500 rental
DW Mortgage on the £40K is about £200

As Im not currently working (till boys go to school) can also get tax relief on the Interest only mortgage as long as it stays in place.

Any idea's/thoughts about the houses, WWYD???
Any other ideas about the finance?? My other idea was to get joint mortgage for the extra 100K and use the rental money to pay the 100K mort, as Im not working any rent on my property is under my tax threshold therefore reclaimable.

Again sorry for the long thread. Any advice welcome.