Hi, I am trying to find out how I would go about releasing some equity from a flat (with a Buy-to-let mortgage) that I currently let out to tenants (via a letting agents).
Some background - I bought the flat in 2011 for £124500, I have since moved into my (now) husbands property and rent the flat out to tenants. I have a buy to let mortgage on the properly which is fixed until early next year. My husbands mortgage is also fixed until around the same time, we have just had a child and would like to look into moving to a bigger property next year. We would sell my husbands house (our current home) but if possible would like to hold on to the flat and continue renting it out - however I would like to release some equity (from the flat) to put towards the purchase of our new home. I am completely clueless as to how we would go about this though - can anyone advise please? I think the flat is now worth in the region of £200,000 and I owe about £90,000 on the mortgage so do have a good chunk of equity in it. How much could I release? I'm assuming by doing this it would bump up my monthly repayments?
Or would we be better of just selling the flat?
Many thanks
Read more: Releasing equity from a Buy-to-let property to fund purchase of new residential home?
