Can I use my current property to borrow £50,000 to purchase a property in Germany?

Posted on 1 April 2008

Hi Katie,

I have a property in the UK worth around £140,000 which I am lucky enough to own outright with no mortgage attached. There are tenants installed giving me an income of £500 per month. I would like to borrow around £50,000 against it to purchase a property in Germany, again for the purpose of letting. Although this seems reasonably straight forward, could you give me some advise as to the best way to do it - a regular mortgage or a business mortgage?  Could you highlight any possible legal/tax problems that I am likely to encounter. Could I also ask you to point me in the direction of some reputable letting/sales agents who handle apartments in Berlin. Many thanks in advance.

Hi Frank,

This would be a straight-forward buy-to-let remortgage, just say that you want to raise £50,000 for investment elsewhere. Property deposits are a perfectly legitimate reason and they won't be bothered about the rest, as it is the property here that they are securing the loan against. £500 rent is perfectly adequate income for a buy-to-let mortgage of £50,000.

You would need to speak to a solicitor about the legal implications, but I can't see any based on what you have told me. If you want a whole-of-market Fees-free broker to recommend the best mortgage for you now, please call 0800 358 55 60 where a Charcol consultant will go through your financial situation and give you some lender quotes.

We don't hold any information on estate agents I'm afraid.

Best of luck.

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