The Question
My house is worth £560,000 and I’m 65. I would like to take some of the money invested in my property to purchase a buy-to-let to make money for my retirement.
I’ve been looking at homes in the North East of England (I live in the South West) and it looks like I’ll need around £200k to invest. Will I be able to borrow this much?
I understand there are other factors and criteria to consider, so if you are not able to tell me, how would I find out more about my eligibility?
Mark’s Answer
Thanks for your enquiry and I can confirm there are many factors for you to consider before you raise capital from the equity in your home for any purpose.
Based on your objectives of purchasing a property to generate income in retirement this can be fraught with risks and needs careful planning and consideration.
It is not clear what experience you have as a landlord, and of course, any landlord with experience will fully understand the risks associated with renting property. These include investing in an undesirable rental property, extended vacancy periods, economic downturn, unexpected maintenance and, of course, unruly tenants.
However, there can be some benefits to the right investor including potential house price inflation and valuable additional income.
One of the most popular ways to raise equity from a property is through a Lifetime mortgage, and based on your age and property value, you may be able to raise £192,920 with a fixed rate of interest with the option to make flexible payments, and it may be possible to raise more capital dependant on your health.
However, at this time, I would strongly recommend that you talk with an expert who can consider all options for you including Equity Release, Retirement Mortgages, Retirement Interest only Mortgages, Buy-to-Let mortgages, and Conventional Mortgages.
Depending on your circumstances you may be eligible for several options, so a skilful adviser who is authorised in all areas with access to the right sourcing systems can provide you with a bespoke recommendation.
Here at Equity Release Supermarket, our advisers are exactly what you need, as they can provide advice in all areas and you will not have to pay them until they have assessed your circumstances, made a bespoke recommendation that must complete, and you are entirely satisfied.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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