mortgage query

trackers_trojans

was wondering if anyone could advise, I live in a property that requires updating and extending , I cannot borrow no more against this property,i also have another property which has stood empty for a while due to renovations being done, I have a 50k mortgage on this property but its worth possibly 90-95k someone now wants to rent this property, is it possible to extend my borrowing on this property, need to raise 40-45k for the work required

holly_hobby

Max you could raise on the let unit as a first time landlord would be 75% ltv under a BTL remortgage.

Hope this helps

Holly x

trackers_trojans

Thanks for the reply holly, so i would have to convert the outstanding mortgage on the property to BTL in order to raise the money, could i not raise the money on aresidential mortgage using the equity in the property?

Caz3121

trackers_trojans wrote: »

I have a 50k mortgage on this property but its worth possibly 90-95k someone now wants to rent this property, is it possible to extend my borrowing on this property, need to raise 40-45k for the work required

That would take your borrowing on the property to 100% which would never happen.
Are both your properties currently on residential mortgages?
The residential mortgage application would ask if the property is to become your residence
If someone is about to let the property you will either need to have a BTL mortgage or consent to let (which I doubt is as option in your situation)

holly_hobby

trackers_trojans wrote: »

Thanks for the reply holly, so i would have to convert the outstanding mortgage on the property to BTL in order to raise the money, could i not raise the money on aresidential mortgage using the equity in the property?

Only if you have a consent to let arrangement, and the lender permits the equity release.

Otherwise, you will have to remortgage onto a BTL arrangement, as the unit is commerically let.

Again, as stated the max mge would be 75% ltv (inc any existing borrowing) - which wont' meet your requirements on its own.

Holly x