Rental property - Equity Release

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nissarm
nissarm Posts: 14 Forumite
in Mortgages & endowments
Hi,

Is there any way to remortgage a rental property to release the equity. Currently, it has no mortgage. I need the money for an extension. I have been informed you can only do this, with the property you live in?

Thanks,
Naz
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  • kingstreet
    kingstreet Posts: 38,770 Forumite
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    It's a remortgage of an unencumbered property.

    You want to borrow money, not equity release.

    Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACG
    ACG Posts: 23,728 Forumite
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    kingstreet wrote: »
    It's a remortgage of an unencumbered property.

    You want to borrow money, not equity release.

    Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

    If he has gone in and asked if Equity Release can be done on a BTL, there is probably a misunderstanding. As far as I am aware equity release Mrotgages can only be done on residential properties. But it is not equity release (as in the life time mortgage definition of ER) that he is after.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • kingstreet
    kingstreet Posts: 38,770 Forumite
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    Just what I was trying to say.

    The expression is "I want to borrow some money" but somehow it's morphed into the more genteel "I'd like to release some equity..."

    That results in the wrong answer being given to the wrong question.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • charlie792
    charlie792 Posts: 1,744 Forumite
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    ACG wrote: »
    If he has gone in and asked if Equity Release can be done on a BTL, there is probably a misunderstanding. As far as I am aware equity release Mrotgages can only be done on residential properties. But it is not equity release (as in the life time mortgage definition of ER) that he is after.

    There are actually at least 2 lenders which will offer a lifetime mortgage product on BTL or second home property, but noted this may well not be what the OP is looking for
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  • Keep_pedalling
    Keep_pedalling Posts: 16,639 Forumite
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    kingstreet wrote: »
    It's a remortgage of an unencumbered property.

    You want to borrow money, not equity release.

    Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

    That assumes the extension is on the rental property, but the OP has not made it clear which property he wants to extend.
  • nissarm
    nissarm Posts: 14 Forumite
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    charlie792 wrote: »
    There are actually at least 2 lenders which will offer a lifetime mortgage product on BTL or second home property, but noted this may well not be what the OP is looking for

    Hi,
    Can you please let me know, the names of the lenders please?
    Thanks,
    Naz
  • nissarm
    nissarm Posts: 14 Forumite
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    The extension will be done on the rental property, when the current contract finishes.
  • nissarm
    nissarm Posts: 14 Forumite
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    Keep_pedalling wrote: »
    That assumes the extension is on the rental property, but the OP has not made it clear which property he wants to extend.
    kingstreet wrote: »
    It's a remortgage of an unencumbered property.

    You want to borrow money, not equity release.

    Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

    Thank you.

    I wish to extend the rental property, at the end of the current contract. What type of mortgage should i be looking for?

    Regards,
    Naz
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    if you plan to take the property off the rental market for a period of time you may need to disclose that information.
  • kingstreet
    kingstreet Posts: 38,770 Forumite
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    nissarm wrote: »
    Thank you.

    I wish to extend the rental property, at the end of the current contract. What type of mortgage should i be looking for?

    Regards,
    Naz
    It's still a remortgage of an unencumbered property. You can add "BTL" in there as well, making it "a remortgage of an unencumbered buy to let property" for 100% completeness.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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