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Mortgage free plan in action, but what next?

Hello

We are a couple living abroad with consent to lease on our small flat in London. As we are leasing we are tied to our interest rate and cannot remortgage. The rate is 4.25%. We have 90k left on the mortgage which we should be able to pay off in full within 2 years as we have good salaries and little outgoings here.

When we move back however we will need a bigger home but would like to keep the flat as an asset and continue to rent it out as it is in an area with a lot of development going in to it which may boost its value if we don't have to sell immediately.

Does it make sense to try and pay it off in full to avoid needing to switch it to a buy to let mortgage, and if we do manage to pay it off can we then release equity from it to use as a downpayment for a new home? I don't really understand this process and we are ploughing all our savings into paying off the mortgage as maximum priority.

Many thanks for your advice :beer:
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