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Equity Release
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I did a forum search for this, but didn't find anything. If I am doubling up on a thread, please direct me and I'll let this one sink!
I've only recently heard of "equity release" and don't really understand it despite some Googling, so I thought I'd start a thread here.
I bought my property in 2012 and have £36k in it. It has risen in value by £16k since then. This valuation is based on Zoopla and a local estate agent's market research (we met today to discuss its value). Does this mean that I have £52k equity in the property? If I were to use equity release, could I use any portion of that £52k to buy a buy-to-let property?
What would the implications be? I know my mortgage repayments would rise. Is it also simply too big a risk? ie if I weren't able to find a tenant, I'd end up with two mortgages to pay...
Has anyone done this? Would I even be allowed to do it, since I am relying completely on letting the property?
I am meeting with a mortgage adviser on Friday to find out more about it, but wondered if anyone here has more of an idea than I do of how it all works for a heads-up.
I've only recently heard of "equity release" and don't really understand it despite some Googling, so I thought I'd start a thread here.
I bought my property in 2012 and have £36k in it. It has risen in value by £16k since then. This valuation is based on Zoopla and a local estate agent's market research (we met today to discuss its value). Does this mean that I have £52k equity in the property? If I were to use equity release, could I use any portion of that £52k to buy a buy-to-let property?
What would the implications be? I know my mortgage repayments would rise. Is it also simply too big a risk? ie if I weren't able to find a tenant, I'd end up with two mortgages to pay...
Has anyone done this? Would I even be allowed to do it, since I am relying completely on letting the property?
I am meeting with a mortgage adviser on Friday to find out more about it, but wondered if anyone here has more of an idea than I do of how it all works for a heads-up.
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Comments
If you mean that you put up a deposit of £36k for your property, then your equity is £52k plus any capital repayment. Firms will advance a percentage of this, the maximum depending on your age.
There are no payments on equity release, hence no increase in mortgage.