Release equity or sell

Tribbles72

Hi
Looking for advice on Webster to sell or release equity.  I am currently a reluctant landlady. I met my partner 6 years, ago, I moved into his house 4 years, ago and we got married last year.  We are both late 40"s.  I am currently renting out my smaller house to a friend.  I do not currently have a, buy to let mortgage but am registered as, a landlord. The rent just covers my mortgage.   There is 70 - 80 k equity.  

My husbands house needs a, lot of work doing to it (at least 30k) but has potential to be a lovely home. Which would be our best option,
Sell mine and use equity to do up husbands and have a joint mortgage.  Downside is no investment for future but no landlord hassles/repairs etc

Or is it possible to switch my house to buy to let mortgage and release money from it to do up husbands (and have both names on both mortgages) Downside is responsibility of landlord abd repairs but we would have a nice retirement fund for future. 
Any advice or tips appreciated
Thank you

lees80

If you get caught renting without consent you won't have the choice, the bank will make it for you. 

If you're happy to switch the mortgage product and are already meeting the legal requirements of being a landlord then releasing equity is an option. Although if your rent is only just covering the mortgage now it almost definitely won't after you change it and release equity. 

Ideal option for you would be to sell your rental and invest elsewhere. 

Tribbles72

Hi Lees80, thanks for reply, only reason why I haven't switched to buy to let is that I'm in decisive and didn't want to arrange new mortgage if I'm going to sell.
I hadn't thought of the third option of selling and buying a cheaper rental, I'll look into it.  Although as much as I would love to have an investment retirement, it seems being a landlord is getting more complicated and expensive.  If I'm correct it seemsthat someone in my situating with one rental is treated the save as a property developer with multiple properties.

In also confused as what happens with equity release, on Googling I can only seem to find options for over 55's.  If I was to request releasing 50k in equity sites that then get added onto my mortgage, so my current amount of 100k would become 150k. Or would it mean that when I do eventually sell they would take 50k of the sale price and other amount outstanding.
Sorry about the questions but I'm clueless with this sort of thing

xylophone

I wouldn't want the hassle of being a landlord. As for Equity Release -  probably too young.
https://www.onlinemortgageadvisor.co.uk/equity-release-mortgages/equity-release-age/
Why not sell and refurbish your home and use the balance as far as possible (and after emergency fund) to contribute to your pensions?

gerald50

While "Equity Release" might sound like th product you want, you don't because you are not eligible on age (and several other) grounds. Instead, see it this way:

• You want to borrow £30k+
• You have a rental property that you believe is worth £70k+ more than the outstanding mortgage on it.
• You can probably use that £70k equity as security for a £30k loan
• Your existing lender might be willing to extend your mortgage by £30k
• Your existing lender might be cross that you've rented out the property without telling them