Posted on 24 July 2016
We already have 3 flats we own outright , each worth £125,000 . They are all already rented out at average of £595 per month each on Shorthold Assured Tenancy agreements through a local respected letting agency.We now want to raise £90,000 against each one to enable us to buy a property in Cheshire for our own use. Can this be done?
From the brief details you have supplied this looks like a feasible deal and I would be hopeful it should allow you to make the move you are looking to make.
You are wanting to release equity from your an existing buy to let properties, suggesting you are an experienced landlord which will be taken into account when accessing the new mortgage. Most buy to let lenders will allow you to capital raise up to 75% of the value of the buy to let property, subject to the proposed rental income likely to be generated. You can then use the funds raised to provide the deposit monies for your new home and then take out a new residential mortgage for the balance. There are lenders available who can take personal income into consideration, if there is a shortfall on the rental income achieved against the loan required
I suggest that the next step would be to discuss your enquiry in more detail, if you would like to do this then please let me know and I'll arrange for one of our consultants to contact you. I would need to know the purchase price of the new property in Cheshire, total mortgage required and your income and expenditure details to move forward with this enquiry.
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