Hi,
I just found this forum and I have never used one before. I have a largeish property in Fordingbridge, Hampshire, UK. I tried selling the property but could not get what was needed from it to cover expenses. I originally purchased it for my Aunt who has subsequently died and now I am left with a property that, I do not wish to sell for below the required amount.
I am an existing but-to-let property investor and own a fairly large portfolio and have often considered turning some of the more ideal ones into holiday lets. I have about a hundred questions that I would like to ask regarding this, but at the moment the top of my list is this one, can anyone help me.
The property has been bought on a residential basis and I wish to re-finance it, pull out some of the equity and then rent it as a holiday home.
My mortgage advisor is very knowledgeable about the buy-to-let market, but really has no idea where to go for this type of mortgage, let alone what the lenders criteria would be.
Thanks in advance for any advice you can offer
Andy
Who can I remortgage my holiday home to?
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Alan Knighting
- Posts: 4120
- Joined: Mon Oct 18, 2004 7:26 am
- Location: Monflanquin, Lot-et-Garonne, France
Andy,
Welcome to the forum.
http://www.thelendingpages.com/
It's a sad fact of life that the worth of anything, including houses, is measured by what a purchaser is prepared to pay for it not what a seller would like to get for it. Maybe the depressed state of sales in the English housing market is your limiting factor. If it is, I would postpone the sale until the market changes in your favour which it inevitably will. Until then, I see no reqson why you should not let it off as a holiday home.
Good luck with your research.
Alan
Welcome to the forum.
I am amazed you are saying that about any mortgage advisor, yours sounds more like a product seller to me. If you are having to do your own reseach you could do worse than start at:-My mortgage advisor is very knowledgeable about the buy-to-let market, but really has no idea where to go for this type of mortgage, let alone what the lenders criteria would be.
http://www.thelendingpages.com/
It's a sad fact of life that the worth of anything, including houses, is measured by what a purchaser is prepared to pay for it not what a seller would like to get for it. Maybe the depressed state of sales in the English housing market is your limiting factor. If it is, I would postpone the sale until the market changes in your favour which it inevitably will. Until then, I see no reqson why you should not let it off as a holiday home.
Good luck with your research.
Alan
Andy, we have a property in London which is rented out on a long term lease so rather than sell it to move to France we thought we would release equity on it. I tried a number of major lenders in the UK (HSBC, First Direct etc.) and they all told me that they didn't release equity on buy to let properties. I thought this was ridiculous and threatened to move my mortgage etc. but apparently that is the way it works now (differnt in the past). Unfortunately it means we now have to sell this property to move to France. It has been an excellent investment and to be honest it was our first home when we got married and with a very secure tenant it seems such a waste to sell.
If you come up with anyone who will release your equity please do let me know. Good luck.
If you come up with anyone who will release your equity please do let me know. Good luck.
Andy & Ciaram,
The only suggestion I would have is to try presenting it to another bank/ mortgage broker in a slightly different light. I thought buy-to-let referred to a property that was purchased purely as a speculative investment, whereas both your homes were purchased for personal family reasons originally.
So I would be inclined to approach them about remortgaging it as a second family home, not as an investment property. I would also look for a primary remortgage rather than asking for a secondary loan/equity line of credit on top of an existing mortgage.
You might want to tell them that although you don't need the house for yourself right now, it's a family home that you intend to move into (or back into) yourself one day within a few years, or that you intend to use it as a second home for family holidays, whichever suits your situation best. In the meantime, you want to rent it on a temporary basis because it is never a good idea to leave a house empty, temporary being the word they may want to hear.
Why you need the extra money is not really any of their business, so if the numbers stack up, (meaning you're not maxing out the equity in the property above around 75% and the anticipated rent is enough to service the debt and other outgoings), I don't know why any bank/broker would turn it away.
It's only a suggestion because I'm not in the UK anymore, but I did something along these lines with HSBC when we moved to the US a few years ago, and maybe worth a try. Good Luck!
The only suggestion I would have is to try presenting it to another bank/ mortgage broker in a slightly different light. I thought buy-to-let referred to a property that was purchased purely as a speculative investment, whereas both your homes were purchased for personal family reasons originally.
So I would be inclined to approach them about remortgaging it as a second family home, not as an investment property. I would also look for a primary remortgage rather than asking for a secondary loan/equity line of credit on top of an existing mortgage.
You might want to tell them that although you don't need the house for yourself right now, it's a family home that you intend to move into (or back into) yourself one day within a few years, or that you intend to use it as a second home for family holidays, whichever suits your situation best. In the meantime, you want to rent it on a temporary basis because it is never a good idea to leave a house empty, temporary being the word they may want to hear.
Why you need the extra money is not really any of their business, so if the numbers stack up, (meaning you're not maxing out the equity in the property above around 75% and the anticipated rent is enough to service the debt and other outgoings), I don't know why any bank/broker would turn it away.
It's only a suggestion because I'm not in the UK anymore, but I did something along these lines with HSBC when we moved to the US a few years ago, and maybe worth a try. Good Luck!