If you are thinking about purchasing or borrowing against, a Buy To Let property, it may be in your interest to learn more about your Buy To Let equity release options.
Buy To Let Equity Release schemes have been put in place for landlords who are looking to extend their Buy To Let investments, which can benefit tax planning and improve your retirement options.
There are a number of different plans available when it comes to Buy To Let equity release schemes and each has its own set of criteria to be met by borrowers.
Before seriously considering a plan we always advise speaking to an expert to make sure you’re getting the best possible deal out there.
Please also note that Equity Release arrangements used for Buy to Let are not regulated by the Financial Conduct Authority.
WHAT IS A BUY TO LET EQUITY RELEASE?
Typically, a Buy To Let property is defined as one that is not owner-occupied and is let out under an Assured Shorthold Tenancy Agreement. As a landlord you are able to borrow against your Buy To Let property and release equity – multiple properties can be used with more than one landlord buy-to-let plan.
One lender, Canada Life, defines the details of their Buy To Let equity release scheme here: https://www.canadalife.co.uk/home-finance/buy-to-let-mortgages/over-55-buy-to-let-options. The plan lets you release between £10,000 and £750,000 from your Buy-to-Let property.
HOW CAN I APPLY FOR A BUY TO LET EQUITY RELEASE PLAN?
Firstly, you must be over 55 years of age but no older than 90 years of age. If you are applying with someone else this applies to the youngest property owner.
To qualify for a landlord scheme, your property’s value must be a minimum of £70,000 and no more than £6 million. Your property must also be situated in either England, Scotland or Wales.
Like all Mortgages and Lifetime Mortgages, there are many factors to consider before applying.
Speaking with an experienced advisor will help you understand what’s available and what makes the most sense for you and your unique situation.
If you’re thinking about a Buy To Let mortgage as an older borrower here’s what you need to know.