This week saw the rebirth of a special buy-to-let equity release plan not seen for the past two years.
Newlife mortgages have relaunched their popular Landlord Lifetime Mortgage plan, aimed at helping landlords release equity form their buy-to-let property portfolios.
The major advantage of this unique form of equity release loan is the fact landlords do not need to sell in order to raise this cash and it can help defer capital gains tax during the process.
Newlife have also extended the 2nd property equity release theme onto holiday homes and holiday cottages which are used for family purposes. Both types of these equity release schemes add variation and build upon the strength and flexibility being shown in the retirement mortgage market.
Based upon the established principle of the roll-up lifetime mortgage, it helps landlords over the age of 55 to convert the equity in their second home into tax free cash. This type of mortgage requires NO monthly repayments and only needs to be repaid on death or when the house is sold, if earlier.
The buy-to-let property must have a minimum valuation of £150,000 and be located in England or Wales. The minimum initial equity release loan amount is £25,000 and this can only be taken on a lump sum basis. Further top-ups can be taken in 3 years time in amounts over £10,000.
A portfolio of upto five investment properties can be utilised subject to a maximum lending limit of £250,000. To calculate how much can be borrowed you need to provide both the property value and the age of the youngest applicant. Loan-to-values start at 13% for some aged 55, increasing by 1% each year thereafter upto an overall maximum of 42% of the property valuation at age 85+.
Should there be an existing mortgage on the rental property then this will need to be either repaid prior to application of the landlord loan, or be paid off from the equity release proceeds on completion.
The fact there are no monthly repayments means that retired landlords can increase their retirement income with this buy-to-let equity release mortgage.
Some examples of where the landlord buy to-let equity release plan can help are: –
As the recent financial news has stated, 2013 is seeing the biggest rise in the popularity of equity release schemes. Therefore, such plans as Newlife mortgages first and only buy-to-let equity release plan can only enhance the growing flexibility and captured marketplace being exhibited.
For landlords interested in equity release on their rental properties call 0800 028 3142 or click the following link to request a buy-to-let equity release quote.Back