Posted on 10 July 2013 by Brendan
I own a second home outright (worth circa £120k) and want to raise some capital (circa £50k from it, in order to buy my girlfriend out of our residential house which we own together. Do I organise a mortgage/re-mortgage or use equity release? I am 37.
You will need to re-mortgage the property as you already own it and then use the funds raised to pay off your girlfriend on your joint residential. The mortgage can be potentially taken until your retirement age.
As you are raising the finance on a property which is not your main residence to pay off your ex, this is an area that many mainstream lenders may not be able to help as this tends to fall outside their lending criteria. The ones that will consider the application will need to assess your financial circumstances in respect of your income being able to support two mortgages.
If you'd like to talk to a consultant to see what your options are, then please let me know and I'll organise a convenient time for one of them to contact you.
More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.