My wife and I have had a buy to let flat for five years and want to remortgage to take out some of the equity that has accrued to do some home improvements on our own house. We paid £180,000 for the flat and put down a 25 per cent deposit. We estimate that the flat is now worth around £210,000. How much money do you think we could take out?
It is common for landlords to remortgage to raise capital. Most do so in order to expand or improve their property portfolios but there are some lenders who will allow you to use the money for other purposes. As you don’t say how much is currently outstanding on your mortgage, I can’t tell you how much you can raise but you should be able to take the borrowing back up to 75% LTV, or even 80% if you want more at the property’s new value, although any lender will insist on having its own formal valuation done.
1st January 0001