How to release equity?

[Eifion A]

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! 

[Lilla D]

Hi,

this is not something I would recommend doing on a DIY basis, so please do speak to a broker regarding your options.

Dependent on your mum's age, you may be able to consider "normal" mortgages or retirement interest only (RIO) mortgages, but perhaps also equity release, lifetime mortgages as well. However, given the nature of these mortgages, they are only accessible via suitably qualified brokers, i.e. those who have CeRER or equivalent qualification and appropriate FCA permission to deal with equity release/lifetime mortgages.

[Conrad_Paton]

Hi eifion,

I agree with everything lilla says.

But..why do you wish to release cash from your mums house and then buy with 100% cash for your BTL property?

Why do you not just buy your BTL with a mortgage? Or am I missing something?

Conrad

[Eifion A]

Thank you both for your replies and apologies for taking so long to get back to you. We were trying to see if it was a viable option more than anything; we have since spoken to a number of mortgage brokers and are going down the normal BTL mortgage route! 

Best wishes and thanks again,
Eifion