Rental property - Equity Release

nissarm

Hi,

Is there any way to remortgage a rental property to release the equity. Currently, it has no mortgage. I need the money for an extension. I have been informed you can only do this, with the property you live in?

Thanks,
Naz

kingstreet

It's a remortgage of an unencumbered property.

You want to borrow money, not equity release.

Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

ACG

kingstreet wrote: »

It's a remortgage of an unencumbered property.

You want to borrow money, not equity release.

Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

If he has gone in and asked if Equity Release can be done on a BTL, there is probably a misunderstanding. As far as I am aware equity release Mrotgages can only be done on residential properties. But it is not equity release (as in the life time mortgage definition of ER) that he is after.

kingstreet

Just what I was trying to say.

The expression is "I want to borrow some money" but somehow it's morphed into the more genteel "I'd like to release some equity..."

That results in the wrong answer being given to the wrong question.

charlie792

ACG wrote: »

If he has gone in and asked if Equity Release can be done on a BTL, there is probably a misunderstanding. As far as I am aware equity release Mrotgages can only be done on residential properties. But it is not equity release (as in the life time mortgage definition of ER) that he is after.

There are actually at least 2 lenders which will offer a lifetime mortgage product on BTL or second home property, but noted this may well not be what the OP is looking for

Keep_pedalling

kingstreet wrote: »

It's a remortgage of an unencumbered property.

You want to borrow money, not equity release.

Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

That assumes the extension is on the rental property, but the OP has not made it clear which property he wants to extend.

nissarm

charlie792 wrote: »

There are actually at least 2 lenders which will offer a lifetime mortgage product on BTL or second home property, but noted this may well not be what the OP is looking for

Hi,
Can you please let me know, the names of the lenders please?
Thanks,
Naz

nissarm

The extension will be done on the rental property, when the current contract finishes.

nissarm

Keep_pedalling wrote: »

That assumes the extension is on the rental property, but the OP has not made it clear which property he wants to extend.

kingstreet wrote: »

It's a remortgage of an unencumbered property.

You want to borrow money, not equity release.

Who informed you as they are quite incorrect? Be careful though as most of the BTL market assumes the property is in 'readily-lettable' condition and adding an extension means it probably won't be for several months.

Thank you.

I wish to extend the rental property, at the end of the current contract. What type of mortgage should i be looking for?

Regards,
Naz

getmore4less

if you plan to take the property off the rental market for a period of time you may need to disclose that information.

kingstreet

nissarm wrote: »

Thank you.

I wish to extend the rental property, at the end of the current contract. What type of mortgage should i be looking for?

Regards,
Naz

It's still a remortgage of an unencumbered property. You can add "BTL" in there as well, making it "a remortgage of an unencumbered buy to let property" for 100% completeness.