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  • FIRST POST
    glaaab
    releasing equity to get mortgage
    • #1
    • 11th Apr 13, 1:31 PM
    releasing equity to get mortgage 11th Apr 13 at 1:31 PM
    hello


    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.
Page 1
  • R P W
    • #2
    • 11th Apr 13, 1:42 PM
    • #2
    • 11th Apr 13, 1:42 PM
    why don't you just sell the house and buy another one?
  • glaaab
    • #3
    • 11th Apr 13, 3:08 PM
    • #3
    • 11th Apr 13, 3:08 PM
    because the lease is short it works out we would get more renting it out in the long run then just selling it
    • Titanium
    • By Titanium 11th Apr 13, 3:16 PM
    • 22 Posts
    • 6 Thanks
    Titanium
    • #4
    • 11th Apr 13, 3:16 PM
    • #4
    • 11th Apr 13, 3:16 PM
    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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