Remortgage residence as BTL?

nicb

Hi everyone,

My wife and I currently own a flat in London. We have lived away from it in accommodation paid for by my employer for the last six years. In that time our family has grown and it’s not realistic for us to move back into the property because it’s so small. We also want to move out of London. The property has built up quite a lot of equity through a rise in house prices and us paying down the mortgage.

So... my question is this: is it possible to remortgage the property as a BTL to extract the equity we have built up, and then to use that equity to buy a new house with a residential mortgage? We’d then look to pay off the BTL mortgage before retirement as a sort of “bonus pension”.

Any advice would be gratefully received!

haras_n0sirrah

Yes subject to the figures stacking up (income and rental income)
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dimbo61

While this maybe a good idea you will have to pay 3% extra stamp duty on the new property.
Most BTL mortgages are broker only and at least 75%ltv.
If you sell the flat you can put down a much bigger deposit and hopefully get a better LTV on your home.
Is you flat a suitable rental property ?
Does it produce a good Yield ?
Do you need to spend £xxxx getting it up to rental standard.
Are you higher rate tax payers ?
Do you pay the max possible into your pension