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Can I take out a mortgage on a flat I own outright?

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Knighttrader
Knighttrader Posts: 23 Forumite
in Mortgages & endowments
Hello,

I hope everyone is well.

I have a 2 bedroom flat on the 6th floor of an ex-council flat that I own outright (no mortgage, bought with cash)

I was thinking about releasing some equity on the property which is currently valued at £240,000.

I was thinking about getting £80k if possible.

Are there any lenders who offer this? Any suggestions or ideas would be greatly appreciated before I go to a mortgage adviser.

Thanks

My Kindest Regards

Comments

  • YHM
    YHM Posts: 650 Forumite
    What would you be releasing the equity for?

    The security (property) may be an issue.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • kingstreet
    kingstreet Posts: 39,258 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Issues;-

    do you live in it or is it let
    remaining lease
    ground rent, service charges, future repair liabilities
    purpose of borrowing
    location
    ex-council
    construction method
    high-rise.

    You should appoint a broker for this ASAP. It's a remortgage of an unencumbered property, BTW.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Knighttrader
    Knighttrader Posts: 23 Forumite
    The equity release would be used for paying off debt.
  • Knighttrader
    Knighttrader Posts: 23 Forumite
    kingstreet wrote: »
    Issues;-

    do you live in it or is it let
    remaining lease
    ground rent, service charges, future repair liabilities
    purpose of borrowing
    location
    ex-council
    construction method
    high-rise.

    You should appoint a broker for this ASAP. It's a remortgage of an unencumbered property, BTW.

    The flat is let out.
    The leasse is 111 years remaining.
    Ground Rent is £10 per year.
    Service charge is £670 per quarter
    Location is RM10
    It is Ex-Council
    Construction is Brick and Concrete made 1969
    It is 17 floors it total.
  • YHM
    YHM Posts: 650 Forumite
    £80k is a lot of debt consolidation. Another factor to consider for a broker...
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • kingstreet
    kingstreet Posts: 39,258 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Knighttrader wrote: »
    The flat is let out.
    The leasse is 111 years remaining.
    Ground Rent is £10 per year.
    Service charge is £670 per quarter
    Location is RM10
    It is Ex-Council
    Construction is Brick and Concrete made 1969
    It is 17 floors it total.
    Sorry. I meant these issues will be important to your broker.

    I didn't actually want answers! :D
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • csgohan4
    csgohan4 Posts: 10,600 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    as above 80k Is a lot of debt, hit the debt free wannabee forum to really hit the debt
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Cyclizine
    Cyclizine Posts: 110 Forumite
    100 Posts Third Anniversary
    Go on the Debt-free Wannabe forum. I wouldn't turn £80,000 of unsecured debt into £80,000 of secured debt without a good reason...
This discussion has been closed.
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