Question on how to release capital from my home

fenderboy

I own my home outright and have considerable equity that's not 'working' for me.
Having looked into over 55 Equity Release this isn't really a route i want to go down due to cumulative interest etc.
Are there any other lenders or schemes that will operate on a fixed term of say 10/15 years that will enable this?
The money released would be to act as a deposit for a buy to let property abroad.

Any guidance would be much appreciated.

BitterAndTwisted

I didn't see anything untoward about your post until I read "Buy-To-Let abroad". Why would you want to put the roof over your own head at risk with what sounds on the face of it like such a risky venture?

poppysarah

Equity is working for you. It means you have a safe secure home. Leave it alone!

Raise the money for your foolish venture elsewhere.

jockosjungle

Why not sell the house and live on the streets? Then when you have these business ideas you'll at least know your money is working for you!

Strongly doubt a B2L is going to make you much of a return after you've remortgaged

R

fenderboy

perhaps i should have explained further that after 10 years or so we would be intending selling up in the uk and going to live there permanently.

As for risk, our uk home's value is about 3 times that of the foreign property which is in a region of about 5% capital growth p.a. and where there is a high demand for summer rentals....i could go on but given these facts do you still regard it as a risk?
Maybe I'm missing something obvious

CLAPTON

presumably you have an income
so remortgage your home
buy your place abroad with the money
use the income from letting to pay your mortgage

googler

fenderboy wrote: »

As for risk, our uk home's value is about 3 times that of the foreign property which is in a region of about 5% capital growth p.a. and where there is a high demand for summer rentals....

Please tell us that you have verified this for yourself, and you're not quoting from the promotional literature of a property investment company or similar.......

pararct

fenderboy wrote: »

perhaps i should have explained further that after 10 years or so we would be intending selling up in the uk and going to live there permanently.

As for risk, our uk home's value is about 3 times that of the foreign property which is in a region of about 5% capital growth p.a. and where there is a high demand for summer rentals....i could go on but given these facts do you still regard it as a risk?
Maybe I'm missing something obvious

Have you not seen the Homes from Hell series on ITV? You need to absolutely sure about what you are doing.

5% seems very optimistic you need to verify this urgently. Do not under any circumstances take the word of glossy brochures

You have not said where the property abroad is.

Be aware Spain, Greece.Ireland and Portugal amongst others are right in the middle of a property value crash. At the same time there is much concern through other Governments of the Eurozone whether they can actually pay back their debts.

The recent riots in Greece are a result of austerity measures put in place to reduce that Countries debt base.

Worst case scenario the Country defaults and the value of its property goes through the floor.

fenderboy

Clapton, how would I remortgage as my current uk home is 100% owned by me...?

And yes we do have earned income, just v.little savings

I haven't been lured by glossy brochures or stuff on the internet....I have actually;

visited the area (Silver Coast, Portugal)

spoken to owners who live out there/manage holiday apartments

actually been on site and looked at other completed properties by the same builder.

As for capital growth, if it levels out that's ok. it just needs to pay its way with about 12 weeks of rental income p.a., that'll cover our costs and provide a retirement property 10 years down the line.

pararct

fenderboy wrote: »

Clapton, how would I remortgage as my current uk home is 100% owned by me...?

And yes we do have earned income, just v.little savings

I haven't been lured by glossy brochures or stuff on the internet....I have actually;

visited the area (Silver Coast, Portugal)

spoken to owners who live out there/manage holiday apartments

actually been on site and looked at other completed properties by the same builder.

As for capital growth, if it levels out that's ok. it just needs to pay its way with about 12 weeks of rental income p.a., that'll cover our costs and provide a retirement property 10 years down the line.

To raise the funds to purchase you would remortgage in full or part your existing property.

Not sure how it would work about transferring the funds to Portugal. Some one on here will know though.

Owners that live out there and or manage apartments are vested interest. It is in their interest to paint a scenario where everything looks rosy. As has been mentioned before do your own research.

You have allowed for Capital Growth and or values levelling out, it would be foolish of you not to consider them falling also and the effect that would/could have on your mortgage obligations.

Be aware there is an absolute glut of holiday type property available in Spain (whole complexes remain empty and unsold, some say they are unsellable). A search on you tube will turn up video's of these places where whole towns look deserted.
Spain is of course not Portugal but in the grand scheme of things most economic pundits agree that the economic future for either of these Countries is not rosy in the short to medium term.

RobertoMoir

I'm going to make this real simple.

When companies tell you "Your equity is not working for you", they really mean "you're not giving us as much money as you possibly could". Your "equity" is currently hard at work helping you fully own your house as opposed to being in hock to someone else for part of it.