Equity Release on Investment Property in UK London, Middlesex
In case you own a buy to let investment and would like to pay off the mortgage you have on that equity release from property under 55, a landlord equity release scheme could be the answer. However, your investment property must fulfil below-mentioned conditions –
- Either a house, bungalow or flat (as long as the block comprises of close to 4 stories or 6 if there is a lift)
- Worth at between £70K – £6m and situated in England, Scotland or Wales.
- The property is either freehold or leasehold with over 80 years remaining on the lease.
- The property is not an HMO property
FEATURES OF LANDLORD OR BUY TO LET EQUITY RELEASE SCHEMES
The amount that you can release using a landlord equity release scheme is not dependent on your personal or rental income, but on your age and property valuation. This amount is less than the amount available on domestic residences.
To discover, exactly the amount that you could obtain, try our free landlord equity release calculator.
- Landlord Equity Release Scheme can be organised with no month to month mortgage payments required.
What is Equity Release on Investment Properties?
Equity release has always been a product referring to the homeowner’s main residence. However, equity release from rental property has expanded to include people who own investment or buy-to-let properties. If you own a buy-to-let property and are over 55, then taking out equity release to buy investment property is a very common strategy today. It is a great way to use your assets to raise funds without affecting your net rental income.
What are the Criteria to Qualify for Investment Property Equity Release Plan?
Equity release on investment property generally includes properties that are owned by the landlords, but not occupied by the owner. Such properties must be let-out under an Assured Shorthold Tenancy Agreement. In order to get the equity release on your property, your investment property must qualify the following criteria.
- The investment property should be either a house, bungalow or flat with no more than 4 or 6 floors.
- The property’s worth should be between £70k and £6m, and located in the UK.
- The property should be freehold. If you are looking for equity release leasehold property, then there should be more than 80 years left on the lease.
- The property owner should be at least under 55 years old.
- The property should be registered as a residence, and not a company.
- There is either no mortgage or small mortgage going, which can be repaid with equity release.
Once you meet the above-mentioned criteria, you can release funds on one or multiple properties. Irrespective of how you release equity in your equity release on rental property, the funds you receive is tax-free money, which means you can use it the way you want. You can either use equity release to buy another property, make home improvements, or live your dreams after retirement, the choice is completely yours.
How Does Equity Release on Buy-to-Let Property Works?
Using equity release on an investment property is pretty similar to other equity release plan. When you choose to take out equity release in property with Equity Release 4 You, you can either get a lump sum of cash or several monthly payments. You can use that money for retirement or any other worthy purpose, without putting your main home as collateral. Just like equity release schemes on a residence, buy-to-let equity release schemes are also available to people who are aged over 55.
How Much Equity Can I Release from Investment Property?
The maximum amount that you borrow from your buy-to-let property is dependent on your age under 55 and the value of your property, and not on your personal or rental income and commercial. The maximum amount you may be able to withdraw is 60% of the total property value. However, the amount you can withdraw with investment property may be lesser than your main residence equity release property. If you are quite older and have medical conditions, then you may be able to borrow more.
You can release this money as a lump sum of cash, in smaller amounts at regular intervals or the combination of both. Use our calculator that will give you an estimation of how much you can release against your investment property. For additional information, you can always contact our equity specialists who are available around the clock to provide impartial advice on equity products.
What are the Benefits of Equity Release on Investment Property?
Get tax-free money
With equity release on investment properties, you can take out a tax-free money, which you can use however you wish. It is commonly used to pay off debts, make home improvements or increase income after retirement.
Receive full amount or in installments
With equity release on property investment, you can either choose to receive money as the full amount or in instalments to reduce the amount of accrued interest. Many people who don’t require a big amount initially choose to release money in smaller amounts, so that it couldn’t affect their pension and other means-tested benefits.
Flexible repayment facility
You can use an equity release on the property, either without any monthly repayments or with voluntary repayments. If you don’t choose to pay monthly interest, it is totally your choice. But, with time, the interest will be accumulated. You will be required to pay the equity amount plus the accrued interest after the mortgage term ends.
You possess the home ownership rights
You are still the owner of the equity release from commercial property as long as you keep up with your repayment agreement. If the value of the property increases in the future, you own the right to sell it and the benefit will go to you and your family.
‘No negative equity’ guarantee
There is ‘no negative equity’ guarantee, which means you will never have to pay more than the value of your property.
You can release equity even if there is an outstanding mortgage
It is possible to release equity from your buy-to-let property provided if you pay off your current mortgage. You can either release some of the equity or use savings to pay your outstanding balance, and thereafter, you may still be eligible for releasing equity on an investment property. In fact, many people use equity release to clear their ongoing mortgage.
Why Choose Equity Release 4 You for Buy-to-Let Property Equity Release?
There are many forms of equity release available in the market today, an even greater number of lenders willing to offer equity products. Thus, if you are confused about which equity release is right for you and not sure where to find a suitable lender, then need not worry. Equity Release 4 You specialises in a vast range of equity release plans as well as investment property equity release. Whether you want to make home improvements or secure your retirement, equity release has worked wonders for many. Our advisers will guide you throughout the from the process, from explaining what is equity release, to which is the best suitable for you and how much money you can withdraw along with discussing all the risks associated with equity release. Make sure you have your spending plan ready before you apply for equity release.
Please contact us today to find out more.