btl morgage and new development

[rocket]

hi

im thinking of renting my flat out but i want to take some money out to buy something else to develop.

So far i owe about 110K on the morgage and estimated value is 160K. I want to take out as much as pos but im not sure how it would work inrelation to starting a BTL morgage and discount needed and how much that would leave me to invest in the new property?

if any one can help it would be appreciated.

[Jonboy]

if you remortgage on a BTL then you would have to leave in 15% of the equity so at 160k value that would be £24k pay off the £110k mortgage and you would have £26k in cash money.

however if you live in the property then you could remortgage with as little as 5% deposit (£8k), then seek permission to let this would leave you with an additional 16K to play with, making a total of £42k for your new project, less fees etc..

not strictly speaking the way you are supposed to do it but many on here will tell you that that is a minor consideration for most people in property!

good luck with the new project

JB

[rocket]

how would that work?

really appreciated as usual.