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I am intending to raise some money off my property which is valued at about 216K at the moment with a mortgage of 81K outstanding.Is it possible to raise cash from this property for another business? Ideally a business loan will be best but due to high rates of 6-7%. I am wondering whether it is possible to raise funds from this property. i intend to raise 100K but can do with less if 100k is not achievable with this property.Unfortunately property is on a fixed mortgage deal for now but will not mind paying the extra charges for paying it off early. the early repayment fee is not much. what would you advise please. Thank you all
It is certainly possible to to this.There are two options:1. Go to your lender and ask for what is known as a "further advance". This is an additional loan against the property and does not affect the existing loan in any way. It is very simple to do and done direct with your current lender. It will of course be subject to all the usual affordability checks. They may grant an additional loan at the same rate or sometimes they offer a different rate.2. Take out a second charge on the property. This is the more expensive route. If you need assistance with this, please contact the team at Property Tribes Financial Services, and they will be able to assist you in arranging this. The number to call is 01206 654444.Hope that helps?
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**
Thank you for your advice Vanessa. How about another strategy of just doing BTL off this property whose mortgage in nearly paid off. In about 4years from now the mortgage left on the 216K property will be about 30K or there about. My plan was to pay off the mortgage and then let out the property and buy another one to live in. however I am beginning to think that there must be a faster way to do it rather than waiting to pay off the mortgage before buying another one. I guess if the present property become mortgage free then i will not have to get a BTL mortgage on it and also I may not necessarily need to set up a limited company to make having BTL properties tax efficient. I am presently torn between having btl as pension or just invest in the markets. i am currently invested in the markets. What I am saying in a nutshell is how do you think I can make the most of this situation to leave me with adequate provision to live on when retired.
There are a number of mortgage lenders who would allow this (not all, but definitely a number of lenders on our panel would) and some go up to 80%LTV for this too.
Full disclosure of what the business purpose is would be required, and of course when borrowing against a residential property the loan amount in total would be based on an affordability calculation taking into consideration income (PAYE or net profit) and ALSO all loans, hp, credit cards, finance etc as well.
For specific advice and personalised quotes and options, contact https://www.propertytribesfinancialservi...ontact-us/ anytime
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