Under 60 equity release

54druids

We have no mortgage on our house and were considering the possibility of releasing some equity to perhaps take on an investment property. Would we still need a deposit? The property would look to by would be approx a third of the value of our present property.i am 48 and hubby is 51.

kingstreet

You may be able to remortgage your own home to raise the whole purchase price, but this will be repayment only and over a shorter term if you are closer to retirement.

As an alternative, raise the deposit (25%+) on your own home using a small remortgage, then raise the bulk of the purchase monies on the investment property itself.

The former will be based on your income/affordability and the term you can get will be determined by age/retirement/lender policy.

The latter will be based on the rental income (it should be at least 125% of the monthly mortgage interest assuming a rate of perhaps 6% per annum.

Consult an independent broker on the best way to approach this, based on your individual circumstances.

amnblog

Smart advice from Kingstreet

54druids

Many thanks for your reply. We werent planning on retiring until the full term. What if we wanted to sell it straight away? We have a flooring company which has started doing some small building projects so we thought we would look for a property to renovate ( nothing too major) and employ the company to do the work. We also thought of taking it on as part of the business but were thinking it might be better not to have all our eggs in one basket

Also, if you were to get a btl mortgage what would happen if you wanted to sellbitblater?

amnblog

A property to renovate is a wildly different mortgage proposition to a property to rent out.

Get yourself some advice from an experienced mortgage broker before you do anything.

54druids

Well not renovate but more update or tart up. So i suppose am just saying we want to sell on rather than let out