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Equity release for deposit?


LewisS

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Hi, any insights would be much appreciated:

I own a house jointly with a friend, the fixed term is due to end at the end of October.
My friend will be buying me out and I should have about 22k

My partner owns a house with her friend, which is currently for sale, she should get around 120k

We are looking to buy a place together (~290), with 90% ltv, however we need to put an offer in asap (this week)

Is there anyway we could access our properties equity now (given that they are for sale) to use as a deposit for the new purchase? We would only need around 45k total released (deposit Also we wouldn't want to pay the higher stamp duty rate of 8% for 2nd property ownership.

I know this is a long shot, but didnt know if there is some financial wizardry possible. Thanks very much in advance 

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We would need to know more about the values of the properties for sale, you can still offer on a property if they are up for sale but ensure that your solicitor ties the sale and purchase together otherwise it could get a bit messy.  

For example, if you want to complete with you still being registered on the title of both homes at completion you will be initially liable for additional rate stamp duty at 3%.  You would get this back once both properties are disposed of, however you still need to find the money on top of your deposit. 

To raise the deposit, the quickest and perhaps only way you could do this would be bridging finance, but you would need the other party's permission and agreement to do this.  It's expensive though.  

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Thanks for the reply :), the properties for sale, are worth around 275k (but I own a smaller percentage than my friend) with 2 yr fixed rate ending in a couple if months and my partners is around 250k ish. (No mortgage) 

The property were looking at is in scotland and we are based in the south atm where our jobs are so we wouldn't be able to live there straight away (idea was to rent somewhere own south whilst owning in scotland and doing it up - it's a ruin btw)

In addition my partner has started a new job and is still in her probationary period. I think given all of the barriers it might be a very difficult thing to sort out until I and my partner have sold our respective houses.

Thanks again 

Lewis

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