FREEPHONE 01234 567 98 00
7 Days a Week 08:00 - 20:00

Buy to Let

If you are a landlord looking for ways to diversify your buy-to-let (BTL) portfolio. A buy-to-let equity release scheme may be the perfect option for you.

These respected and popular financial schemes are designed for retired homeowners. They release you of the burden of fixed monthly payments. Better yet, any rental revenue that you receive can go towards your retirement, inheritance, home improvements, holidays, and more.

The buy-to-let equity release scheme is not a decision that should be taken lightly. However, it does allow mature BTL homeowners to take the maximum advantage of their wealth.

So, how do you qualify? What are the key benefits, and how do you pay it all back?

Read on to find out.

Buy-to-let Equity Release Schemes Up Close

As a buy-to-let homeowner, you can borrow against your home. As a result, this means that you won’t have to make any monthly repayments. Instead, the interest is rolled over into the life of the plan. Payments are only made once the homeowner passes on, or moves into residential care and the property is sold.

You have the option to take the money that you release in either a lump sum, small instalments, or a combination of both. However, this is something that should be discussed with your lending provider as not all of them offer this option.

How Do I Qualify?

In order for you to apply for a buy-to-let equity release plan, there are certain criteria’s you must meet. They include:

Age

You must be over the age of 55, and no older than the age of 90. How much you can borrow is also dependent on your age. If you are between the age of 55-60, you can borrow up to 14%-19%, between the age of 61-71, borrowing is 20%-30%.

Basically, the older you are, the more you can borrow. It is important to highlight that how much you can borrow is also dependent on your personal circumstances.

Value of Property

The value of your property is another determining factor of whether you qualify or not. Your property must be valued at over £70,000, but must not be worth more than £6 million. Only properties you own in England, Scotland and Wales apply.

Features of Buy-to-let equity Scheme

Such schemes have grown in popularity over the years, because of the great features and benefits they include.

Some key features are:

  • No minimum income requirement
  • You have the option to make voluntary payments
  • Make free evaluations at no extra cost
  • You are not required to take an assessment for affordability
  • The interest rate is fixed for life

Benefits

  • You reserve the right to own the property for the rest of your life
  • Any money you release is tax-free
  • There is a “No Negative Equity Guarantee” meaning that you will never owe more than what your property is actually worth

The drawback of the Buy-to-let Equity Scheme

Although the scheme comes with some very beneficial and highly persuasive benefits and features, nothing is perfect. It is a huge financial decision. That is why it is important to understand some drawbacks you may face, before you take any action.

Let’s take a look at some of the potential risks that you may face.

Benefits Entitlement

If you get state benefits then it may affect your buy-to-let entitlement. You should discuss your options with an expert, they can tell you whether or not your current benefits will be affected.

Downsizing

Depending on your lending provider and terms of your loan entitlement, you may have to downsize to be able to release extra funds.

More Long-Term Costs

A buy-to-let equity release mortgage may work out to be more expensive than selling the property in the long-term. Ultimately, this will come down to a few factors, like high-interest rates, additional costs by lending providers etc.

Bad Credit

If you have a low credit score, have previous mortgage arrears, made late payments, this may hinder your application. Having said that, it does not mean that you won’t qualify for the loan. In fact, if you do have bad credit, there are some lenders that are willing to help. Getting a quote will not cost you anything, even if you do have bad credit, your lending provider will be able to tell you what you may or may not be eligible for.

Is it right for me?

If you would like to free yourself of monthly repayments, you own more than one buy-to-let property and are not so concerned with the idea of increased interest, than is a great option for you to consider.

However, this scheme may not be right for you if you have concerns about reducing the equity of your property.

Final Thoughts

Taking out a buy-to-let equity release comes with some huge advantages. Whether you want to free up funds, go on a dream holiday, add to your inheritance, make some home renovations, or simply have more money available for your retirement, such schemes provide you with the financial capacity to do so.

Any huge financial decision should be taken with the utmost precaution. It is highly recommended that you seek professional advice, weigh out the advantages and disadvantages and analyse your financial position. Everything mentioned above is there to help guide you into making a decision you are comfortable with.

After all, there is nothing better than celebrating years of hard work, a stress-free retirement, and enjoying the maximum benefits of your wealth.

Contact Us For More Information

If you are interested in applying for the buy-to-let equity release mortgage, do not hesitate to contact us for more information. Our experts will be able to guide you through the entire process and list out all the benefits, features and risks.

At Equity Release Warehouse, we can help you decide which plan would be best suited for your personal needs and you under no obligation to take any further action. All we do is make it easier for you to be able to enjoy the retirement you deserve.

We are here to help you

To Provide Friendly, Efficient Advice For The Life Of Your Mortgage.

Request Free Brochure

Looking to release some cash that is tied up in your property?

FREE BROCHURE
Contact Us

You can contact us by calling 0808 1000 170 or using our contact form

CONTACT US
How much can you release

Use our Equity Release Calculator to find out how much cash you can release

CALCULATE NOW

More about equity release

How does it works?

Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Learn More
Why does it works?

Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Learn More
Your jurney

Lorem Ipsum is simply dummy text of the printing and typesetting industry.

Learn More