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Remoraging a house, maximizing the equity.

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londonsw6
londonsw6 Posts: 29 Forumite
edited 18 September 2015 at 9:18PM in Mortgages & endowments
We have a house in Fulham, London with a lot of equity in it. The house is currently worth 2.2 million pounds and we have a morgage of 250k pounds. We are both live overseas, Whats your guys best advice to release equity from the property. Would we remorgage it or get a loan off it.We're overseas landlords and the house is currently rented for 1200 pounds per week. The house is under a 2 year lease. What we went to do is try to take money out of the house and buy another house. We live in The United States, my mom is an American citizen and i was born in England and i have a British passport.
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Comments

  • Landofwood
    Landofwood Posts: 765 Forumite
    You could sell it
  • londonsw6
    londonsw6 Posts: 29 Forumite
    the house is rented on a 2 year lease
  • Landofwood
    Landofwood Posts: 765 Forumite
    londonsw6 wrote: »
    the house is rented on a 2 year lease

    Could you clarify what you mean by "lease"? I assume you mean you have tenants with a 2 year rental agreement?

    If so you could still sell right?
  • londonsw6
    londonsw6 Posts: 29 Forumite
    No I don't have the option to sell. I have to wait until the 2 year agreement is done.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    londonsw6 wrote: »
    the house is rented on a 2 year lease

    The tenants could default on paying the rent.

    Holding a British passport means little if you are not actually working and resident in the UK.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    londonsw6 wrote: »
    No I don't have the option to sell. I have to wait until the 2 year agreement is done.

    Why not? Normally having a house rented out doesn't prevent you from selling it - it just means the buyer would 'step into your shoes' as the new landlord.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Annisele wrote: »
    Why not? Normally having a house rented out doesn't prevent you from selling it - it just means the buyer would 'step into your shoes' as the new landlord.

    Gross yield of 2.8% is hardly attractive.

    Might as well buy a block of student flats with £2.2 million.
  • humphrd
    humphrd Posts: 52 Forumite
    This is familiar hasn't this question been asked several times over the last few months ?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You are correct. Wonder what's changed?
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Thrugelmir wrote: »
    Gross yield of 2.8% is hardly attractive.

    Might as well buy a block of student flats with £2.2 million.

    Good point; I missed the rental amount. I still think selling might be the right answer. OP's tenant might be happy to leave in exchange for a suitable incentive.
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