Equity release problem.

[markus]

Three years ago I lived in property "A", I then remortgaged and brought property "B" and moved into property "B". I kept the standard mortgage on property "A" and rented it out.

Property "A" is now worth about £210`000 and has a mortgage of about £129`000 . It is currently rented out for £"825 per month. I wish to release about £35`000, however my current lenders are unwilling to lend me anymore money under the current mortgage or if even if I were to convert it to a buy to let mortgage.

Next year I will be selling property "A" and will rent out property "B" so don`t really want to commit to a long Buy to let mortgage on property "A" as I will be buying another property to live in and would like a standard Mortgage.

Any idea`s on how I can get the £35`000 from Property "A" ?

[tenant29]

Why don't you sell your property "A" now ? What do you expect to gain by selling next year ?

Points to consider - You are allowed 3 years to sell a property which you have lived in, without being required Capital Gains Tax . Also in anticipation of HIP becoming a requirement in mid 2007, there may be some doubts on the direction of price levels.

You should check the max % loan for buy-to-lets offered by your current lender - it may be only 75 % of property value which means you could extract 28K from your property. Can you top this up with a separate small loan from Northern Rock at 6.1% to make up 35K ? What interest rate are you paying now on your standard mortgage ?

[Matt Churchill]

Would have thought that you could find a lender willing to go to 80% LTV, which would be an extra £39k without too many tie ins.