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Showing results for tags 'equity release'.
Found 13 results
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Hey folks, I'm after some advice. At the moment I don't have the capital to start investing. I also have a little debt that I am in the process of paying off. My thoughts for obtaining the starting capital is to release the equity from my home. My current mortgage deal ends in 30 months. So I was wondering would it be advisable to remortgage early and eat the fees in order to obtain the capital quicker?? At the moment I have a £3,000 cushion from past overpayments that would be more than enough to pay the fees. At the moment my house is worth circa £200,000 with my mortgage being £100,000 am I right in thinking you can release equity upto %80 of the value of the property. Using these calculations I estimate around £60,000 of starting capital. I understand this a personal choice that needs be made but would just like to hears others thoughts on this. Thanks in advance
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My mother owns her own home outright which is worth about 110K. We are looking to invest in BTL together and have 60K capital between us; how do we go about releasing the equity in my mother's home so we can use the capital to cash-purchase a BTL property? Any advice greatly appreciated!
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Hi Hubbers! We are newbies to property investment and are starting with £50k from equity in our home. With the idea to refurb then rent and release equity for the next in a couple of years. We are starting to run some numbers to see what kind of projects will work but I'm unsure of how to add in the cost of the equity release. It is as simple as adding to difference between our current mortgage payments and the mortgage payment after the equity release as a cost to factor in? Or it just the additional interest part of that mortgage payment. If so how do I calculate that? The LTV band increases after remortgaging which means a higher interest on the full sum. I want to make sure we are being realistic and the deal stacks up before taking the equity out. Thanks Amy Oh and we are based in Northamptonshire if anyone knows of any good local resources.
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Hey Fellow Hubbers! So my property in Sheffield is coming up for remortgage now and I am trying to decide whether a 2yr or 5yr is best. This is my first property and the first remortgage, so just interested in what people normally do. I know it depends on your goals, and for me, it’s maximise cashflow and pull out as much equity as possible to reinvest. I do like the idea of knowing what I will pay for the next 5 years but as I am only at the beginning of my property journey feel I need to be a bit more aggressive and recycle my deposit to get that snowballing rolling. So my thoughts are that rates will not go up too much over the next 2 years (according to economists but who knows with Brexit yawn), so I could do a 2 year and then a 5 year to lock in a lowish rate. I could also potentially just take a 5 year and then get a further advance or second charge mortgage to run alongside it if there is substantial equity. The 2 year would improve my monthly cash flow by about £30. The other thing is those pesky arrangement fees, sure they give you better cash flow the higher they are but your mortgage ends up getting bigger and bigger, what are your thoughts on this? I know that it may look cheaper paying the arrangement fee, but you will be paying interest on that fee for the life of the mortgage right! Any advice would be greatly appreciated! If you need any other info to give me a better answer, please ask Cheers, Alex -
Hi, I am an absolute novice in all this so forgive me if my question is dumb or else... I have a bit of cash on the side and formed an Limited SPV to invest my hard earned cash in some BTL. Initially I thought of buying Cash a property and seeing how it goes but I am now having second thoughts: What happens if I want to buy another property and all my cash is locked into my first property !!? I am wondering what is best for Limited SPV: 1/ Buy the first property with a mortgage which gives the advantage of leaving some cash for a second property. 2/ Buy the first property Cash and ask a lender for a mortgage later to release equity when I want to buy a second property. This has the advantage of making me a cash buyer, which I guess sellers like more. But I have no idea how the equity release aspect will work etc. also I could have a surprised if the lender values my property much lower than where I bought it. However I though that maybe a lender will be more inclined to give better terms if the asset is already bought and (hopefully) tenanted. Hopefully someone with experience in the matter will share their knowledge/experiences .... and I thank you very much in advance. Best regards -
Hi all, Does anyone have experience of leveraging a second charge on their own residential home, with the view of releasing equity to invest, and also remain living in that property? Thanks. -
Hi all, I may have asked this before as it has been an ongoing issue but I am looking to see if anyone knows why I am struggling to find a lender who is happy to touch ExPats who live in Australia for a remortgage. It wasn't an issue before as I have tapped equity in this property twice in the last 5 years but now it seems to be a big issue. I have plenty of equity at about 55% LTV which I could easily use to carry on building a portfolio if I could only release it. I guess second question might be that if I sold the property to release the equity what capital gains tax might I be up for. I lived in the property for about 10 years out of the 15 that I have owned it. Thanks Paul -
Does anybody have a contact who could give me more information on equity release? Potentially it is something I could do, but I would like to talk through my options (if any). Thanks Paddy
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OK I’ve got a question for everyone. Over Christmas my friend mentioned that his parents due to retirement / illness are looking to sell their home. He said that the outstanding mortgage is costing them c£1K per month and this will mean that all of their pension would be spent on servicing the mortgage. They are therefore looking to downsize to move to a flat near by. They don’t really want to leave the family home though. It’s on the market at around £210K and they accepted an offer of £195K. Unfortunately for them, the deal fell through 3 days before they were meant to complete and be move out. My question to you is this. Is there money to be made here? But in an ethical manner. There’s the route of giving them say £100K, taking ownership of the property but then they live there rent free until one/both dies. The issue here is that the mortgage payments are c£1K a month – so the mortgage must be quite large. These are all of the facts that I have. I don’t want to pry any more into their circumstances. So what do you think? Is there something that could be done here that benefits both parties? Ideas welcome! -
OK I’ve got a question for everyone. Over Christmas my friend mentioned that his parents due to retirement / illness are looking to sell their home. He said that the outstanding mortgage is costing them c£1K per month and this will mean that all of their pension would be spent on servicing the mortgage. They are therefore looking to downsize to move to a flat near by. They don’t really want to leave the family home though. It’s on the market at around £210K and they accepted an offer of £195K. Unfortunately for them, the deal fell through 3 days before they were meant to complete and be move out. My question to you is this. Is there money to be made here? But in an ethical manner. There’s the route of giving them say £100K, taking ownership of the property but then they live there rent free until one/both dies. The issue here is that the mortgage payments are c£1K a month – so the mortgage must be quite large. These are all of the facts that I have. I don’t want to pry any more into their circumstances. So what do you think? Is there something that could be done here that benefits both parties? Ieeas welcome!
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i understand how leveraging works to build an empire... but i cant seem to find information on how cash is trasfered around to a new scource. IE: buy at 100k at 75%/25% Do up and remortgage at 125K. Does the money get put into your bank account or does it have to be secured on a home. Sorry if this is a dumb question but i cant find a complete answer anywhere. Does the new lender give you cash and put it in your current account!?! I feel like a bit of a bone head asking this to be honest. Could some body give a 100K 75/25 example and explain the route and destination of the various finances. I was surprised how hard it is to get this information but maybe i am looking in the wrong place. Much obliged in advance. Tom
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Desperately seeking a financial wizard/accountant/bookkeeper to help me prepare for my first re mortgage to release equity for a self build / BTL strategy I have a salary of £26k incl overtime, plus around £20k of self employed + rental income (commercial property sub lets, lodger and parking) I've been doing my own tax returns for years and as I'm so conditioned into maxing my expenses to pay as little tax as possible, I feel it would be wise to employ a suitable wizard with a sound understanding of the current requirements of lenders to give me the best outcome. I need to be sure what types of income, (specific to my circumstances) will be considered valid by potential lenders so I can submit 1 tax return at the end of jan, and the next at the start of April and satisfy the 2 years requirement for self employed My current mortgage is guarantored and expires in April 2016, I would like to get this going beforehand however and am not tied into a mortgage deal, on the SVR currently I'd like to keep my flat to let, and use the as much of the 400k ish equity to self build, and possibly to buy a cheap ish BTL also if possible Can anyone kindly make a recommendation? Many thanks! Mike -
Hi guy's, I have a total of £15K in a current account paying 3% interest. With Inflation at 1.8%, I am looking at a return of just 1.2%. I am really keen to invest in a buy to let property and as an Architect feel that I have sufficient knowledge to choose the right property. However, I am aware that £15K isn't a great deal of capital but am keen to make the most of it. At 75% loan to value, this means a property with a value of £60K. In Galashiels (Scottish Borders), where I work, £65K will buy you a 1 or 2 bed flat. We do have the ability to increase this amount by between £300 and £500 pcm. So, do I continue to save (how much should I aim for - how long is a piece of string), invest in a really cheap flat, release equity from my home (valued as £215K with a £150K mortgage) to boost my capital. I appreciate that most responses will begin with, 'well, it depends', but your insight and suggestions will be most welcome. Thanks guy's. Regards Marc
