Landlords can now release cash from properties without selling up
Using new equity release schemes, you might well be eligible to release cash from properties in your buy-to-let portfolio without needing to sell up completely.
How can landlords release cash from properties used for rental?
Until recently, buy-to-let landlords could only access mortgage options that permitted equity to be released on their own residential property.
When looking to release equity on rental properties, landlords were therefore forced to sell the property before this could occur. This state of affairs frequently proved disruptive for both landlords and tenants alike.
However, a suite of new options from pensions company Retirement Advantage could enable you to release cash from properties owned solely for rental purposes.
These options allow you to take out a loan on more than one property. However, the value of those properties must be £70k-£6m. Properties worth more than this are considered on a case-by-case basis. You would also need to be over the age of 55.
If you sign up, you can choose from three repayment options:
- Pay off the full amount at the end of the loan term
- Pay interest on the loan during your lifetime
- Pay off up to 10% per year (without early repayment charges)
Each option has a different interest rate. These range from 6.07%-6.45%.
With landlords bearing the brunt of a host of regulatory changes in recent years, isn’t it time you started looking at new ways to access capital to maintain a steady cash-flow?
Call on the friendly 3 Wise Bears team to get more expert accountancy tips for landlords.
