1 BTL gone up in value, no residential home. How to free up cash for deposit?

propertydog

I have just one home. It’s BTL mortgage.

I have never owned a home/mortgage at all for myself to reside in. In the early years of my job I had to move at regular intervals to new postings so I rent instead. However my career is now stabilising to one place, so I will be looking to settle down in a year or two.


It wouldn’t help the LTV on my BTL/rates, but even if I pay more BTL interest I could be paying off a residential mortgage rather than losing £9k pa in rent to a landlord (like me :P) somewhere else as I do now.


When you have a BTL with decent capital growth but no residential property of your own, and you are losing ££ on renting your own bed each year, how can I use the capital growth/equity to get myself cash for a residential mortgage without selling my BTL?

If I remortgage now, my LTV will be ridiculous e.g. 90%, and presumably banks wouldn't just give me the spare cash while I leave the deposit at £73k. So am I missing something, please?

Thank you v v much.

Thrugelmir

Have you considered the position once the new tax changes start coming into effect?

amnblog

Additional lending on the property will be based on the current value, not the purchase value. So yes, you can do this.

On the rental quoted expect to raise £318,750 total as a maximum on this property.

Speak to a broker.

propertydog

Thanks for the replies.

I will be fully costing future BTL tax rises etc fully before taking out any additional borrowing. The post was more to see if this was possible, and if I was right in thinking it's a remortgage that's needed to free up cash?