Second Charge on Property or remortgage - need advice

Pinkleylandii

HI

We have a property with 3 loans on it which is rented out at £625.00 per month. The property loans come to £125,000 and it is worth £205,000 approx. We have equity in it worth £80,000 upon which we want to release £25,000 to buy another property with guaranteed rental income (this is via a lease and is definite) which we will offset against the £25,000 we borrow. The problem is tie ins are £4,700 if we remortgage the lot. We thought we may take an additional secured loan on it for £25K so as not to pay tie ins but does the organisation we have the 3 loans with have a say in whether we can take an additonal loan? and can we get a excellent rate with no penalites if we pay back in say 5 years? Any advice would be appreciated.

jonesMUFCforever

It works like this
First charge gets all the money owed to them when/or if you are forced to sell,
Second charge gets leftover funds and then if there's any left you get rest.(Make sure that 2nd charge relates to loan covering the property only NOT an all monies charge- your solicitor can give you more info on this)
There should be no reason why you should not take out a second mortgage if you wish - they will let first company know about what they are doing.

regularsaver1

some times some lenders will not lend you the additional funds if you are not living in the property - it depends though