Best Option for Equity Release

glp

Hi, Asking for advice on best way to release equity on a small cottage i have in yorkshire which currently has a tenant in and which i own outright.
I had it valued at £80,000 and would like approx £35-40,000 to build an extension on our new tiny house which we have just moved in to. I did have it up for sale but after 6 months, and not sold, thought it best to have someone in it. If i can keep the cottage, and tenanted that would suit me, until the housing market picks up.
Thank you.

Thrugelmir

glp wrote: »

until the housing market picks up.

What timescale are you thinking of? There's potentially years of uncertainty ahead as the unwinding of the financial bubble hasn't even started in earnest yet.

glp

No time scale really, i dont mind keeping the cottage long term or forever, the idea was to sell to be able to do what we want to our new house. But if we keep it, what is the cheapest way of releasing some of the equity. Thanks,

Thrugelmir

As its let, you would need a BTL mortgage. Probably best to approach a local broker and see what's available. Arrangement fees on BTL products may diminish the attractiveness of the option.