In the past, equity release schemes were only available on a homeowner’s primary residence. While there were many features and products available, equity release schemes could never be used on a second home, or a property that was let-out. However, that is no longer the case. Now, there are additional plans available that allow you to release equity from a qualifying second home.
A qualifying buy-to-let equity property is one that is not occupied by the homeowner and is formally let-out under an Assured Shorthold Tenancy Agreement. To be eligible for this product, the homeowner must be between the ages of 55 and 90. This age applies to the youngest homeowner if borrowing jointly. The property must have a valuation between £70,000 and £6 million and must be located in Scotland, England and Wales. Check your buy-to-let mortgage eligibility with our smartER tool.
Landlord equity release providers use their other lifetime mortgage products to launch their Buy-to-let plans. This means that there are a variety of options available including voluntary repayment plans which allow homeowners to manage the overall balance of their loan. In general, homeowners can choose a repayment option that works for them. The option chosen will have an impact on the future loan balance. Examples of options include roll-up interest plans and repayment plans. With landlord equity release schemes, you as the homeowner can benefit from fixed early repayment charges of 8 years without incurring any penalties.
Buy-to-Let equity release products are most useful for homeowners who are landlords but still want to benefit from an equity release scheme. We can help you determine if a buy-to-let scheme is the right option for you.
Calculate how much equity you can release with a buy-to-let mortgage