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Equity Release
Devo
Posts: 236 Forumite
I have a small flat in Manchester which is mortgage-free and worth c200k. I need to raise around 25k capital to finish and open a business I have setup here in the Philippines.
Is it an option to use an equity release company to raise this capital from the flat and can I pay the money off once the business is open as I know I'll be able to?
PS - I'm 56
Posted on behalf of my father
TIA
Is it an option to use an equity release company to raise this capital from the flat and can I pay the money off once the business is open as I know I'll be able to?
PS - I'm 56
Posted on behalf of my father
TIA
0
Comments
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An equity release product is designed for the elderly to release capital to help increase their income in retirement from their main or only asset, so I don't think this is the right option, based on your age alone.
You might want to think about remortgaging the property, provided you have the income to meet the payments. The use of the funds might be a problem though as most lenders shy away from business start-up situations.
Might be worth contacting an independent broker for more in-depth advice.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I agree; 56 is on the young side for equity release.
Who (if anybody) is living in the flat at the moment? Would it be an option to get an ordinary mortgage (on either residential or BTL terms) and release equity that way?0 -
Is your father now no longer living in the uk? any uk taxable income?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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get a buy to let mortgage not Equity release.0
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