Capital Raising for a second Home

Posted on 2 April 2011 by kay laxman


I am an 83 year lady and would like to buy a 2nd home in Spain.  Will it be possible to do this using my rental flats in the UK as equity?

Kay,

I only know of one lender who will consider you for a BTL mortgage at your age and they would want the mortgage repaid by the time you are 90.  This would give you less than 7 years to repay the amount borrowed and could mean that you will have to consider selling 1,2 or all 3 properties depending on what happens to house prices.

Depending on the rental income you receive and the amount of equity in the flats, it is certainly possible to raise the capital to buy another property and I do not think that it will matter if it is in Spain or the UK.  Also, by raising the finance in the same currency as your rental income you will avoid any problems that may otherwise be caused by fluctuations in the exchange rate.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.

Peter

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.

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