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Hi every1, i want to buy a property that i have seen for a FLIP. I have two other properties and have approx 450k equity across them.
Is there a way of buying this property with out using my own hard cash, but use the equity?
Or how would the experts go about this purchase?
Hi Az,You should be able to raise bridging finance against the equity in your portfolio.If you give the PT Brokers Team a call on 0333 363 6507, they will be able to assist you in structuring this.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I find myself in a similar position but have a lot more equity, but I dont work. Best to go down the buy to let mortgage route on properties that don't have mortgages?
It really depends on your personal circumstances and what you are hoping to achieve. Best talk to a reputable broker as ^^^.Taking out BTL mortgages on unencumbered properties is one way to release equity.See also - The power of owning a property with no mortgage on it
What is the purchase price of the property you are buying? With £450k visible equity, you could get you up to 100% of the purchase price.
Hi , purchase price is 275k and it will need another 75k refurb, end value will be circa 450k. So i would need to raise the full 350k for approx 4 months.
Hi Az, we could potentially raise you all of the funds. Happy to chat through options if you'd like to get in touch (Kinetic Money 0800 002 9608)
Hi Az. Allow for 6 months minimum because most lenders won't lend to your buyer until you have owned the property for 6 months.
Hi Az Hussain,
Well equity is your own hard cash, just trapped.
The team at Bespoke Finance can certainly help you with this. We offer products in which secure the "deposit" for the flip on existing properties, allowing you to buy the property.
If enough equity ( a lot depends on LTV's) you can take out the full cash and buy the property to be renovated in full, without finance.
Your welcome to give them a call on 01133203240 and will be able to go through the process with you. They do also have a "hunting licence" that keeps that cash available after this one, works for some but there is a premium.
_________________________________________________________________________My posts are not financial advice but often me rambling - passing time on a coffee break.Our team at Bespoke Finance offers Limited Company Buy-to-Let and Cheap Life Insurance._________________________________________________________________________
Valuation, legal and loan arrangement fees on bridging can be a joke.
I was buying a mixed-use property for £403,000 and, because my bank had changed their appetite for property (after I'd dealt!), I ended up needing a 6 month 100% bridging loan, for which the lender used £200k equity on one of my BTLs.
The lender, Wellesley Bank, charged me £8k arrangement fee, their valuer charged about £4k inc VAT for both properties and their solicitor's bill wasn't far off that. Then, because their solicitor made such a song-and-dance about everything, my solicitor had to spend much more time on it than usual, hence, his bill was over £1500 on the deal.
Expensive lesson learned!