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  • FIRST POST
    • Phil_rich
    • By Phil_rich 23rd Jul 12, 9:51 PM
    • 264Posts
    • 68Thanks
    Phil_rich
    Asset rich income poor..
    • #1
    • 23rd Jul 12, 9:51 PM
    Asset rich income poor.. 23rd Jul 12 at 9:51 PM
    Evening,

    A difficult question which I need some help with please.
    What would be the best route to go down for raising capital for someone who is asset rich and income relatively poor.

    Situation is, a property worth circa £750k plus a seperate stable yard/land worth £200k. The £750k has a £250k mortgage but the yard is debt free. Income is circa £60k per annum.

    Without selling an asset what would be the best way to raise some funds against either of these properties? How many income multiples will the banks go to? will they considder the LTV? could a seperate mortgage be obtained against the yard? Looking to raise £100k+

    Thanks for any help.
    --- Fat club weight loss -- Started 10th April 2015
    Update: 28.4.15 - 8lbs
Page 1
    • Thrugelmir
    • By Thrugelmir 23rd Jul 12, 9:54 PM
    • 47,778 Posts
    • 39,832 Thanks
    Thrugelmir
    • #2
    • 23rd Jul 12, 9:54 PM
    • #2
    • 23rd Jul 12, 9:54 PM
    The purpose of the funds would influence a lenders decision. Days of easy equity withdrawl are over.

    £60k of income won't support £350k of loan debt.
    "A man who wishes to remove a mountain begins by carrying away the smallest stones first."
    • Phil_rich
    • By Phil_rich 23rd Jul 12, 10:09 PM
    • 264 Posts
    • 68 Thanks
    Phil_rich
    • #3
    • 23rd Jul 12, 10:09 PM
    • #3
    • 23rd Jul 12, 10:09 PM
    Cash is wanted to go down as a deposit for a BTL. BTL mortgage will be another 100k but funded and applied for by business partner. Potential rent will cover the £200k price.
    --- Fat club weight loss -- Started 10th April 2015
    Update: 28.4.15 - 8lbs
    • GMS
    • By GMS 23rd Jul 12, 10:10 PM
    • 5,350 Posts
    • 2,783 Thanks
    GMS
    • #4
    • 23rd Jul 12, 10:10 PM
    • #4
    • 23rd Jul 12, 10:10 PM
    Cash is wanted to go down as a deposit for a BTL. BTL mortgage will be another 100k but funded and applied for by business partner. Potential rent will cover the £200k price.
    Originally posted by Phil_rich
    You providing the deposit and not party to the mortgage will cause issues.

    Have you tried your current lender for a further advance?
    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.
  • holly hobby
    • #5
    • 23rd Jul 12, 10:50 PM
    • #5
    • 23rd Jul 12, 10:50 PM
    A separate mge for the yard would require the title deeds splitting, and sufficient documented supporting income ... obv any mge, residential or commerical needs to have supporting income (which may of course be rental based, if from commerical prems, and proven as consistent over the historic period via HMRC returns/accounts).

    The only exception is an equity release lifetime mge (which is age restricted, and I doubt acceptable in anyevent, if the stable yard element maintains its current commercial aspect).

    Hope this helps

    Holly
    • getmore4less
    • By getmore4less 24th Jul 12, 8:50 AM
    • 24,697 Posts
    • 14,932 Thanks
    getmore4less
    • #6
    • 24th Jul 12, 8:50 AM
    • #6
    • 24th Jul 12, 8:50 AM
    What is the stable/land being used for?

    Why not fund the BTL at 75% and then you only need £50k thats £25k each and a much healthier risk profile for a partnership rather than you injecting 50% and the business partner taking no risk by borrowing against the property. if the venture fails and there is a short sale you are the one taking all the hit.


    What gross yield is this BTL.
    • Conrad
    • By Conrad 24th Jul 12, 11:41 AM
    • 27,587 Posts
    • 46,351 Thanks
    Conrad
    • #7
    • 24th Jul 12, 11:41 AM
    • #7
    • 24th Jul 12, 11:41 AM
    There's usually a way through cases such as this, but it's one for an experienced broker, so I'd suggest you try that route.

    We'll all be living in caves if we're not governed by old Men in Brussels
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