equity from house or sell

p_f_jones

I have asecond property & need to release some cash.
would it be best to sell house & reinvest money
or take out equity from house "all be it 25% of value" & rent it out.
Im 62 & was concerned if i took out equity I would pay vast amount of interest !!!!!

Tom99

[FONT=Verdana, sans-serif]To little information to say either way but a number of things might influence your decision:

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• [FONT=Verdana, sans-serif]is the property already let out?[/FONT]
• [FONT=Verdana, sans-serif]Can you raise a larger mortgage on the property, if this 25% is all the equity you currently have in the house then maybe not?[/FONT]
• [FONT=Verdana, sans-serif]Would there be any CGT if you sell[/FONT]
• [FONT=Verdana, sans-serif]What interest rate would the mortgage be[/FONT]
• [FONT=Verdana, sans-serif]Will you be able to set of the increased mortgage interest against rent for tax purposes.[/FONT]