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Equity Release?
WestWalesEd
Posts: 13 Forumite
Hello
Advice please!
I started a thread here a while ago about buying from my parents - thankfully that has all gone well and I was able to do this, thus securing my parents property for their future. Some of the advice was very useful so thankyou.
Onto my next plan!
I have identified a seemingly abandoned property I wish to purchase. I have downloaded the land registry deeds which identifies the current owner. The property was purchased in 1993 and for as long as I can remember has been unlived in - boarded up, garden overgrown etc. I have taken the first step by writing a letter to the current owner asking if he would be interested in a sale but I am dubious as to if I will get any form of reply.
Having taken that step I need to think about how I finance this. The property I now own has been valued at 180k - and I bought it for 85k. SO therotecially there is around 100k of equity in this property. The mortgage I currently have is on a Buy to Let basis, so as I understand it this may make getting a further mortgage easier?
I will need to take out equity for any deposit on house number 2. But I am 34, and everything I have seen says you have to be older?
Lets just start this one off, throw me questions etc!
Advice please!
I started a thread here a while ago about buying from my parents - thankfully that has all gone well and I was able to do this, thus securing my parents property for their future. Some of the advice was very useful so thankyou.
Onto my next plan!
I have identified a seemingly abandoned property I wish to purchase. I have downloaded the land registry deeds which identifies the current owner. The property was purchased in 1993 and for as long as I can remember has been unlived in - boarded up, garden overgrown etc. I have taken the first step by writing a letter to the current owner asking if he would be interested in a sale but I am dubious as to if I will get any form of reply.
Having taken that step I need to think about how I finance this. The property I now own has been valued at 180k - and I bought it for 85k. SO therotecially there is around 100k of equity in this property. The mortgage I currently have is on a Buy to Let basis, so as I understand it this may make getting a further mortgage easier?
I will need to take out equity for any deposit on house number 2. But I am 34, and everything I have seen says you have to be older?
Lets just start this one off, throw me questions etc!
0
Comments
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Equity release is a range of products that allows people over 55 to release equity from their homes. You are not over 55 and you are not trying to release equity from your home so it's not an option.
That leaves you with re-mortgage but as you've only just got a mortgage that would probably lead to some rather heft ERC.
You're best bet would be to go and see this miracle working mortgage broker you used before who somehow managed to get you a regulated btl using a gifted deposit from the tenants (your parents).0 -
Dunce question - what is the difference between equity release and re-mortgaging?0
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WestWalesEd wrote: »Dunce question - what is the difference between equity release and re-mortgaging?
Equity release gives you a chunk of money that doesn't require any repayments until the property is sold or you die. Interest is rolled up in the loan amount.You can pick your friends and you can pick your nose but you can't pick your friend's nose.0 -
Aha, so the best option is to re-mortgage the house to release the money?0
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