Wednesday, September 20th, 2017
Equity release in the residential housing market has seen significant growth in recent years, a trend which shows no signs of slowing. More interestingly, and perhaps because of the uncertainty surrounding the buy to let market, here at Caboodle Finance, we have noted an increase in the level of enquiries from landlords.
Whilst equity release on buy to let properties is not actually a new thing, what has changed is the overall market that landlords now find themselves in. Consequently, we believe that more landlords are utilising equity release across their buy to let portfolios so that they may then continue to benefit from property investment in the longer term.
At first glance though, buy to let landlords do not seem the obvious choice for an equity release solution when compared to a traditional mortgage. However, given the market changes landlords have already experienced and the well documented challenges (be they Statutory or otherwise) still to come, it is perhaps easy to see how the combination of these factors has put pressure on professional landlords and more specifically their ability to make a “worthwhile” profit at a time when house price increases have also slowed.
Additionally, there is also a growing evidence that even those buy to let landlords with just one or two properties may also be looking to exit the market.
Certainly, for some, an appropriate equity release solution could provide a tax-free lump sum which also has the potential to allow a property to be retained over a much longer period during which the landlord is able to benefit from both the rental income and any future house price growth that may accrue.
Making the decision on which route to take is not always an obvious one but our specialist advisers will be able to assess your individual circumstances and determine whether equity release may be more appropriate in all the circumstances than a more traditional buy to let mortgage/re-mortgage solution.
If you would like to understand more about how our specialist advisors here at Caboodle Finance of Sutton Coldfield, Birmingham can help you decide, please call us today on 0800 151 2407 or just complete the enquiry form by clicking HERE to contact one of our team.
Caboodle Financial Services Ltd
Mere Green House
46-48 Mere Green Road
West Midlands B75 5BT
Telephone: 0121 308 9114