Posted on 27 October 2014 by Gillian
Hi, I'm wanting to buy a property to renovate and then sell on, should be a quick turnaround, we have about £425,000 equity in our home and I want to release about £150,000, what is the best and quickest way to do this?
Typically for this kind of deal we would be looking at bridging / development finance, however with the amount of equity that you have, the simplest way almost certainly would be to raise the £150,000 against your current main residence. We would usually look to tale a product that doesn't have any early redemption penalties, so you can have the flexibility of repaying it once the renovated property has been sold. Alternatively we could look at an offset mortgage, so that you could pay the slae proceeds into the offset account, which would mean that the monies would be readily available for the next project, without having to reapply for them.
Not all lenders will consider this kind of short term term finance against your main residence, and this is another reason that offset may be a good option, though if we had to use a lender who manually underwrites, then it may be that we have to look at a rate inbetween mainstream residential ones and development.
If you'd like to discuss your options in more detail, then please contact one of our consultants on 0344 346 3672 and they'll be able to give you a more detailed idea of how we can help.
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