Btl mortgage to release equity

nelix2000

Hi, my partner and I own a flat with a BTL mortgage. We cannot sell as the Market is so slow and we have good tenants. It was my partners flat, but I lived far away so we rented the flat out and bought a house where I live.

Our current house is a fixer upper.

Is there anyway we can free up equity in the flat? Everywhere I look says you need to be over 55

Flat is worth roughly 78k with a 58k mortgage....can we release 20k of that money somehow? It would give us all we need to fix up our current home.

Many thanks

_Andy_

There are no 100% remortgage products on the market.

Senior_Paper_Monitor

You are at 75% LTV on the BTL - while there are a few (very few) mortgages available at 80% for BTLs, the cost of swapping would eat up pretty much all of the extra 5%.

Based on your reference to 'over 55' I think your been looking for 'equity release' i.e life time mortgages rather than 'releasing equity'. The 55 years of age minimum applies and you will not get 80% on these at any age - the amount allowed increases with age.

I'm afraid that your plan is going nowhere.

holly_hobby

Senior_Paper_Monitor wrote: »

You are at 75% LTV on the BTL - while there are a few (very few) mortgages available at 80% for BTLs, the cost of swapping would eat up pretty much all of the extra 5%.

Based on your reference to 'over 55' I think your been looking for 'equity release' i.e life time mortgages rather than 'releasing equity'. The 55 years of age minimum applies and you will not get 80% on these at any age - the amount allowed increases with age.

I'm afraid that your plan is going nowhere.

Kensington will go to 85% (C&I or I/O) - min income of 25k if not a portfolio landlord, rental calc 125% at 5.99%.

SPM is correct with regards to the fees - you may well find that the value of any equity released, is somwhat eroded by the accompanying fees.

Hope this helps

Holly