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Remortgage to release equity for refurbishment business
Ezra6
Posts: 3 Newbie
Hi,
I am sure this has been covered on this forum before but I am hoping for some advice.
I have a second property I own in London which i purchased 10 years ago for £260k which has recently been valued at £420k. I rent out the property for £1250pm. It is a 20 year interest only mortgage.
I am hoping to start a new line of work of Property Development.
With no large cash sum of savings, my first thought was to sell up in London and use this profit for my first project.
I am now thinking would it be a better idea to keep hold of the London property, allow for more of a price increase in the future and release equity from it instead.
Is this a viable and practical option?
How much could i release from the property?
Or was my first thought of selling and taking the cash the best option?
What are your thoughts on how i should proceed?
Cheers
I am sure this has been covered on this forum before but I am hoping for some advice.
I have a second property I own in London which i purchased 10 years ago for £260k which has recently been valued at £420k. I rent out the property for £1250pm. It is a 20 year interest only mortgage.
I am hoping to start a new line of work of Property Development.
With no large cash sum of savings, my first thought was to sell up in London and use this profit for my first project.
I am now thinking would it be a better idea to keep hold of the London property, allow for more of a price increase in the future and release equity from it instead.
Is this a viable and practical option?
How much could i release from the property?
Or was my first thought of selling and taking the cash the best option?
What are your thoughts on how i should proceed?
Cheers
0
Comments
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or the property could go bang again and loose cash in negative equityDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Yes you can remortgage and take out more, as long as you meet the loan to value and rental coverage requirements. Look into buy to let mortgages and you should be able to find online calculators that tell you how much you can borrow.
Lastly I think your approach is a good one, hold on to the London property and take out funding against it.0
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