Advice needed - consent to let & equity release

tocs23

I bought a house last year for £62k, after splitting from my partner. Got a 90% LTV mortgage from Halifax on a 2 year fixed rate deal. The property needed quite a bit of work done, which has been completed. I estimate that it is now worth in the region of £95-100k.

My partner and I have recently got back together, and I would ideally like to do two things:
1) release equity from my property (from the value I have added) - mainly to repay the personal loan my parents gave me to get the work done in the first place
2) rent it out (so apply for consent to let)

I don't want to sell the property as I believe it will be a good long term investment and from speaking with a local agent I know that there is a strong demand for rental properties in the area (I understand that I will have tax and other legal obligations to fulfil as a landlord).

I just wondered if anyone had experience of releasing equity and applying for consent to let on a residential mortgage (with Halifax or otherwise)? Am I likely to come up against any significant issues?

Thanks in advance.

G_M

You presumably want to keep the existing 2 year deal (as early redemption penalties will be expensive). So you need Halifax to add a 2nd loan, as well as CTL?

So start with a chat to them.

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sam2015_2

You will have to remortgage to release any equity from the house. You might not want to do that until after the fixed rate ends.

Are you going to buy another property? If not, you can get a person loan to repay your parents and apply for CTL to rent out your property. You will need to check with Halifax whether you are eligible to get CTL and for how long.

tocs23

Thanks both.

I won't be buying another property (not for the foreseeable anyway) so a personal loan may be an option - I'll look into that. My intention, had I been staying in the house, was to ask Halifax for a second loan (in the form of equity release) at some point this year and my mortgage advisor seemed to think that would be feasible. I'm just not sure whether adding the CTL element might mean that is harder to do.

Will give Halifax a call tomorrow and investigate all options.

Mossfarr

I was granted consent to let on my property whilst the mortgage was in a fixed term period. The lender - RBS - said that I would be need to change to a BTL at the end of the fixed term.
If you were given the same advice you could remortgage for the higher amount you want on a BTL mortgage (provide you keep within the required LTV rates). You will probably have to pay application and valuation fees.