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BTL mortgage at 70?


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My parents are both 70 and have a mortgage free BTL property (1 building = 1 shop, 6 flats all occupied/renting well) that, as a family, we would like to free up some equity to allow my sister and I to buy BTL property.

We want to free up as much cash as possible at a reasonable interest rate. My parents are 72 and 70 and my dad's health is deteriorating if this is relevant.

Will it be possible for my parents to get a BTL mortgage with 25% remaining in the property and free up 75% at a reasonable rate (comparable with BTL mortgages i might be able secure myself, aged 41)?  

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Many lenders will look at max age 80 or 85 at end of term and some don't have a maximum. Would have to review all the case to make sure other criteria requirements stack up but age 70 shouldnt be a reason your parents cannot apply for the same products as you. 

Regards

Kirsty

Property investor ¦ Commercial Finance Broker ¦ Ex banker with 20 years lending experience. 

Commercial Lending Manager at Real Finance Ltd - www.realfinance.co.uk
Happy to discuss any queries regarding property finance for  Company/Complex BTL, HMO, MUB, Holiday Let, Commercial, Bridging & Development.  

kirsty@realfinance.co.uk
07494949852

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Great, thank you Kirsty. Part of the reason to mortgage is to reduce my parents estate without selling the property and incurring CGT. I'm hoping that they live beyond 85 - what would happen in this scenario, if we wanted to avoid selling the property? 

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I think you need to sit down with an accountant for some detailed tax advice on your whole family position (make sure they are a certified tax adviser as well as not all accountants are). They will advise you the most tax efficient way to structure the estate and assets. 

Property investor ¦ Commercial Finance Broker ¦ Ex banker with 20 years lending experience. 

Commercial Lending Manager at Real Finance Ltd - www.realfinance.co.uk
Happy to discuss any queries regarding property finance for  Company/Complex BTL, HMO, MUB, Holiday Let, Commercial, Bridging & Development.  

kirsty@realfinance.co.uk
07494949852

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Do they need the income? If not they could gift the property to you and your sister and if they survive 7 years it would be outside their estate.

If you did manage to remortgage in your parents name have you considered what would happen when they die - are you planning to sell the property to pay the IHT? If you have invested the cash released in other BTLs you may not have enough cash to pay off the mortgage.

I think you probably need some professional advice about IHT planning

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