New to the Equity Release market in the in 2019 is the ability to release a tax-free lump sum from your BTL property or BTL portfolio, make no monthly payments and keep the rental revenue received as income into retirement if you want.

Of course, you also have the choice and flexibly to decide whether to make interest and capital repayments or simply let the interest roll-up. These products allow older owners of Buy-to-Let properties greater ability to make the most of their property wealth.

The ‘voluntary overpayment’ options available allow you to service the interest if you wish. It’s a big decision but as a landlord you can release equity from your BTL property which you will still own for any legal reason including:

• Home Improvements
• Holidays/Cruises/Travel
• Gift Money to Your Family
• and more..

How Do I Qualify?

You need to be over 55 and your property needs to be worth over £70,000
or more, the property must be of standard construction (with some exceptions) and be let on an assured shorthold tenancy agreement (or AST for short).

How Do I Pay it Back?

Usually the loan is repaid on your death or you going into long term
care for more than 12 months. However, if you wish to make payments on a voluntary overpayment basis you can. There are no affordability assessments or income requirements.

You can take an initial amount and then in the future apply for further advance. A fixed interest rate will be applied to each further advance taken and may vary from the original interest rate provided. Each time you apply for additional borrowing the lender will send you a new offer which will advise of the new interest rate.

Key Features

• 8 year fixed and defined early repayment charges.
• Free valuations, with no cap.
• No affordability assessments.
• No minimum income requirements
• Customers have a fixed interest rate for life
• Open ended mortgage term
• Options to make voluntary repayments

Benefits of a Buy-to-Let Mortgage

• You retain ownership of the property for the rest of your life.
• The money you release is tax free.
• The ‘No Negative Equity Guarantee’ means that you will never owe more than the value of their property.
• You can use the money released for any legal purpose.

At BRS Equity Release, we feel it is equally important to highlight the negative aspects of buy-to-let equity release/buy-to-let lifetime mortgage. We want all of our clients to have total clarity and understanding of the products that they might be interested in buying, so that they can make an educated and informed decision in what is a very important matter.

The perfectly designed product has never existed, think about any car you have ever purchased, or for that matter any other product. There will always be things that you don’t like, so let’s take a look at some of the things you need to bear in mind when choosing a buy to let lifetime mortgage/buy to let equity release.