Turning equity into cash

deano3

Hi All,

Im 6 months into a 2 year fixed mortgage with Barclays.

I purchased a repossession for 80k, spent some money on it and its now been valued at 95k.

Outstanding mortgage is 71k.

I dont know how the process works but would it be possible to take some of this equity out of the property and how is it done, will it cost me fee's?

I do have an appointment with Barclays but its not for 4 weeks so just after any info in advance.

Many Thanks

kingstreet

A property you bought six months ago has increased in value by 18%? Is that a surveyor's valuation or an estate agent's marketing appraisal figure?

If you wish to borrow more, you either;-

approach your existing lender for additional borrowing

remortgage to a new lender and repay your current mortgage and fees/charges

seek a second charge/secured loan.

Each option will have pros and cons and you are going to have to roll your sleeves up and start your research.

deano3

We got the house under value and fitted new kitchen, bathroom and pretty much everything else. Estate Agent advised we put it up for sale for 100k. The same houses are selling for 95k without new kithcen so im confident in the valuation.

Thankyou for your reply, im hoping if valuation is agreed i can take out a new mortgage with Barclays and release cash that way, i just need to discuss if any charges/fee's are required, hope not.

kingstreet

For the kind of comparables surveyor will use, go here;-

http://www.rightmove.co.uk/house-prices.html

and search for the actual recent sold prices of similar property in the vicinity.

If you "repay" your existing mortgage, you will normally pay any early redemption penalty, either by changing products with your existing lender or remortgaging elsewhere. The additional borrowing or secured loan options will avoid that.

Thrugelmir

What's the purpose of the equity release?