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Asset rich income poor..
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# 1
Phil_rich
Old 23-07-2012, 9:51 PM
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Default Asset rich income poor..

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.
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# 2
Thrugelmir
Old 23-07-2012, 9:54 PM
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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.
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# 3
Phil_rich
Old 23-07-2012, 10:09 PM
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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.
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# 4
GMS
Old 23-07-2012, 10:10 PM
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Quote:
Originally Posted by Phil_rich View Post
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.
You providing the deposit and not party to the mortgage will cause issues.

Have you tried your current lender for a further advance?
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# 5
holly hobby
Old 23-07-2012, 10:50 PM
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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
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# 6
getmore4less
Old 24-07-2012, 8:50 AM
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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.
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# 7
Conrad
Old 24-07-2012, 11:41 AM
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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.
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