Beyond retirement age..? Help!

kingstreet

As we have no idea if your circumstances will be the same in three years' time, I'm not going to opine on that.

You have options now, should you wish to investigate them.

holly_hobby

Just to throw in ... assuming you have a clean credit history and wish to stay on IO, there are a couple of lenders that don't have the rigid upper 75 yrs age ceiling, and with an unencumbered 2nd property as a repayment vehicle (ie your BTL), subject to LTV, that will also meet their current IO criteria - of course your actual pre and post retirement income will have to be sufficient to service the debt over the chosen/permitted term - whether the lender will be prepared to lend to, or indeed, exceed age 90 yrs available with a BTL arrangment, will be a suck it and see exercise.

Of course, if you instead release the funds via an IO equity release remortgage on your BTL unit, in order to repay your current residential mge (which should be permitted by the BTL lender under equity release), whilst the term may be restricted to your 90th bday, the mge interest (subject to * refer below), is a permitted tax deduction off your gross rental income (as it is classed by HMRC as capital withdrawal), with associated remortgage costs also a permitted deduction of the business.

Of course having your BTL unit with a mortgage, will obviously reduce your net yield, whilst also reducing your total income and overall tax liability (which may be advantageous to your tax class, esp if you are, or will become higher rate, with you higher post retirement income & rental receipts).

* permitted deductable mge interest, is capped at a mge sum equal to the value of the property when it entered the business (ie became available for letting).

Your broker will guide

Hope this helps

Holly x

Charlton_King

holly_hobby wrote: »

Of course, if you instead release the funds via an IO equity release remortgage on your BTL unit, in order to repay your current residential mge (which should be permitted by the BTL lender under equity release), whilst the term may be restricted to your 90th bday, the mge interest (subject to * refer below), is a permitted tax deduction off your gross rental income (as it is classed by HMRC as capital withdrawal), with associated remortgage costs also a permitted deduction of the business.


Holly x

As mentioned before, I own it outright. I do not see the need for any seeking of anyone's 'permission'... it would be a sale, not an equity release.

kingstreet

I thought you didn't want to sell the BTL?

Our solution is to take a BTL remortgage on the let property to repay the residential mortgage on your home.

holly_hobby

??

I do think you now need to sit down with a broker, whom will have the time to review your circumstances, and explain each option, and the merits/draw backs of each, in simplistic terms for you.

But you have here the bones of what those choices will be.

Hope this helps

Holly

Charlton_King

Once again, thanks to all for the pointers.

maisie1234

My mother has a mortgage with Halifax. She borrowed £40k on interest only and her estate pays it on her death. But she has the payments until she dies. As they are not very much she is fine with this. She couldnt afford the endownment policy and such like when it was offered to her.

She is 81 now. I did speak to Halifax as I thought it was a strange type of set up but they confirmed it was correct.

holly_hobby

Yes, that was a Halifax Home Retirement Plan - which was unfortunately withdrawn for new business sometime ago (intermediaries in 2011, direct branch business pre-dated this).

Hope this helps

Holly