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releasing equity to get mortgage
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# 1
Old 11-04-2013, 1:31 PM
MoneySaving Newbie
Join Date: Apr 2013
Posts: 2
Default releasing equity to get mortgage


i new to the forum but need some advise.

my partner who has poor credit has recently been left in a will a 4 bed property which has a lease that runs out in 2036 and is paid outright until then.

We beieve the rental value of the property is around 1200 pcm. W e would like to buy a house and live mortgage free. Question is would we beable to release some of the equity in the property to get a deposit for a mortgage which we could then use the rental income on the leasehold to pay the mortgage?

Also my credit is average as i had a settled ccj 4 years ago and have had a few late payments over the years.
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# 2
Old 11-04-2013, 1:42 PM
Serious MoneySaving Fan
Join Date: Jun 2012
Posts: 1,416

why don't you just sell the house and buy another one?
R P W is offline
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# 3
Old 11-04-2013, 3:08 PM
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Join Date: Apr 2013
Posts: 2

because the lease is short it works out we would get more renting it out in the long run then just selling it
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# 4
Old 11-04-2013, 3:16 PM
MoneySaving Convert
Join Date: Oct 2009
Posts: 21

Most lenders usually don't lend on properties of short lease. Your best option is probably to apply to extend the lease; if you want to get a mortgage.
Re credit rating, lenders have now tight restrictions on this. I heard a lender refused a mortgage application because the applicant had a single 22 missed payment (which was not his fault) on his Orange contract!
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