Capital Raising on a Gifted Property
Posted on 14 September 2011
Hi, I have recently been gifted a property worth around £120k with no outstanding mortgage and would like to get a "Let to Buy" on a new property. Are there any lenders who will allow capital raising on the gifted property with 6 months of change of ownership?
If I am reading this correctly you are looking to borrow against the gifted property on a Buy to Let basis in order to raise the deposit on a new residential purchase and the good news is there are still lenders who will consider this. You will need to be showing as the registered owner with the Land Registry and the amount they are willing to lend may be restricted by using the lower of the purchase price or valuation for their calculations.
The amount you are able to raise will depend on the anticipated rental income, as a rough guide you can expect the monthly rental to have to cover 130% of the monthly mortgage interest payments. The margin exists to allow you to build up a reserve to cover unexpected maintenance ands any rental voids.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0844 346 3672 and tell the consultant the date and title of your question, they will then be able to advise you on your situation.
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