Best way to release equity when I live overseas & only UK income is the rent on that property?

CJSnet

Hi all, here's the basic info. BTL mortgages seem impossible to find now (I'm 50). What's my best route to release equity?:

Rental income: £2,250 PCM

Property value: £500,000

Existing mortgage outstanding: £230,450
Equity: £269,550

I need to release: £150,000 (to pay back a second loan that is maturing)

Total loan on property would then be: £380,450 (76% LTV - I'm fine with dropping it to 75% with a slightly smaller loan)

This rent is my only UK income. I do not have other income. I live overseas. So I am looking to borrow purely based on the property value in one of the UK's most affluent areas, and the reliable rental income which has been consistent for 14 years.

Thank you.

subjecttocontract

I'm not sure that your gross income of £27000 is enough to support a £380,000 mortgage. Assuming your property valuation is accurate, that would represent a 73% loan to value.

CJSnet

subjecttocontract said:

I'm not sure that your gross income of £27000 is enough to support a £380,000 mortgage. Assuming your property valuation is accurate, that would represent a 73% loan to value.

Thanks for the reply. The numbers being what they are, what options do I have to release as much as possible? Or what would you do if you were me.

amanda1024

Have you considered selling the property and using the sale proceeds to pay off the loan?

gm0

Specialist broker.  Manual underwriting. Nothing direct. Computer says no - affordability.

CJSnet

amanda1024 said:

Have you considered selling the property and using the sale proceeds to pay off the loan?

Yes, that's a last resort though. It's a nice investment.

CJSnet

gm0 said:

Specialist broker.  Manual underwriting. Nothing direct. Computer says no - affordability.

Gotcha. The Little Britain response So, can you point me in the right direction to achieve a positive result and get started with a specialist broker/manual underwriting please. Do places like Which? or Unbiased offer those routes?

Veteransaver

CJSnet said:

amanda1024 said:

Have you considered selling the property and using the sale proceeds to pay off the loan?

Yes, that's a last resort though. It's a nice investment.

Gross yield 5.4%. How much would interest rate on mortgage be?

amnblog

You have a number of issues here which I suspect with not give you a route for further borrowing.

Expats are only acceptance from certain countries, depending on the Lender
The Lender has no protection against  the property being vacant if you have no earned income
The rental income based on current rates and therefore affordability calculations would struggle to support the present borrowing
If you have recently left the UK that helps, if you have been out two or three years or more it makes it more difficult

You could approach a Broker with experience of Ex Pat borrowing but I imagine a sale is your option.