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Equity release Question? Equity release Question?

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Old 05-10-2009, 07:22 PM
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Default Equity release Question?
I have a property which i want to rent out,but i would need 10K from it to use as a deposit on a house i want to buy.
Is such a thing possible?

I have 60K equity in the house i am going to rent out.

Any help would be appreciated.
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Old 05-10-2009, 08:07 PM
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You say 60K equity, which will be 50K with 10K released. So, some questions...

1. Is the property valued at less than 200K? (current lenders requires 75% Loan To Value, so 200K at 75% = 150K + 50K equity).

2. How long have you had the current mortgage and are there any redemption penalties.

3. Will your current mortgage provider allow you to modify the mortgage to get the equity?

In theory, if you have enough equity to keep 75% LTV (you might be able to get 85% LTV) and it doesn't cost much in redemption, then yes, you can remortgage and take out money.

Speak to your financial advisor. If you don't have one, then have a look here... Ashfield See how much you can afford on your mortgage - FOCUSPortals - AshfieldFOCUS.Com.
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Last edited by AshfieldFOCUS.com; 05-10-2009 at 08:09 PM. Reason: I said more than 200K, it needs to be less than 200K to get 75% or better LTV
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Old 05-11-2009, 10:09 AM
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Quote:
Originally Posted by jambo View Post
I have a property which i want to rent out,but i would need 10K from it to use as a deposit on a house i want to buy.
Is such a thing possible?

I have 60K equity in the house i am going to rent out.

Any help would be appreciated.
Yes it is possible, but will depend on your case circumstances.

Please advise the value of the property, the rental income, etc or you can pm me with all the details
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Old 05-11-2009, 05:32 PM
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Property is valued at £150,000,and have been advised £650 pcm for rental.

Hope this helps.

Thanks
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Old 06-10-2009, 04:22 PM
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be careful with equity release schemes. all but a few are very poor value for money. sure you get some cash now, but they end up taking a huge chunk of your home. i would advise you to take out a loan instead
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Old 06-26-2009, 05:48 PM
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Really you need to seek some expert advice on your situation as there are many different factors that could affect your equity release application. One of the main points that seems to have been missed is the fact that the youngest age you can apply for an actual equity release scheme is 55 years old.
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