Equity Release - No Mortgage

Size66

I have a second 'holiday home' worth about £170k with no mortgage on it. Is it possible to relase some equity to refurbish the kitchen in my main residence ( 15 - 20k? ) if its poss how do i do it and what can i expect in terms of monthly payments Thanks :j

Foxy-Stoat_3

How long will the repayment term be? Quite important.

holly_hobby

Given the holiday home status and the amount you wish to borrow, you may currently struggle to obtain a traditional remortgage arrangement for this, however given its unencumbered, you may find it easier to obain a secured personal loan (subject to status), speak to your own bank in the first instance.

The associated interest (as long as you actually purchased it/or it was valued at more than your loan amount at the point it entered let) is a permitted HMRC deduction from your gross rental receipts (you'll need to get an annual interest statement from the provider) - as it is essentially classed as capital withdrawal and a business expense.

Hope this helps

Holly

Foxy-Stoat_3

Look at compare the meerkats, put in the loan amount and term, you should be able to see roughly how much you will pay.

Size66

holly_hobby wrote: »

Given the holiday home status and the amount you wish to borrow, you may currently struggle to obtain a traditional remortgage arrangement for this, however given its unencumbered, you may find it easier to obain a secured personal loan (subject to status), speak to your own bank in the first instance.

The associated interest (as long as you actually purchased it/or it was valued at more than your loan amount at the point it entered let) is a permitted HMRC deduction from your gross rental receipts (you'll need to get an annual interest statement from the provider) - as it is classed as capital withdrawal.

Hope this helps

Holly

oops forgot to mention i dont let it out -its purely for personal use, so there is no income generation - just utility and council tax bills !!!!

holly_hobby

Yes, but you have your own income ... ????

Or are you saying you have this private holiday home, and no other earned income to support the 20k loan reqd ?

H x