Rasing cash from rental property

[siv244]

I have studio flat worth about £75000 approx.Bought with cash for £33000. I wish to morgage it now to raise cash to do extension on my own house ,so I will morgage it for £33000.
Now my question is can I also take bigger morgage to pay for lease extension on this property (at present I do not know how much this will be but about £5000 I quess).
So morgaging the property for £38000?
My second question is can I set the interest on the whole amount against tax?
Many thanks for your help.

[Telometer]

I have studio flat worth about £75000 approx.Bought with cash for £33000. I wish to morgage it now to raise cash to do extension on my own house ,so I will morgage it for £33000.
Now my question is can I also take bigger morgage to pay for lease extension on this property (at present I do not know how much this will be but about £5000 I quess).
So morgaging the property for £38000?

If you can persuade a bank to lend you money then that is between you and the bank.

Now for the tax question.


My second question is can I set the interest on the whole amount against tax?
Many thanks for your help.

I assume that you have been renting this property since first you bought it? Please confirm. On this basis:

Yes, you may. 33k - withdrawing your original equity; 5k enhancing your rental business property.

[siv244]

Thank you for your help. The studio was bought some 9 years ago and has always been rented out . It needs lease extension (75 years left) and bathroom refit.
Finding reasonable morgage at present not easy,other obtion for my house extension is to sell it in the spring,not something I wish to do.