Equity Release on a newly purchased home

L

LouthMan

Guest
Hi People

I have purchased an apartment and it wouldn't be ready until next spring. My Mortgage is 280K and i reckon when i move in the place will be worth €365K. If i wanted to take out some Equity to startup a new Company. Would i only get 92% of the Equity, do i have to wait until i live there for a certain period of time ? Can i put the mortgage interst only after a couple of months ?

Thanks
LM
 
Re: Equity Release - New Company

most lenders will do a mortgage top up/ equity release after approx 6 months of paying the mortgage, so if the property is not ready until spring presumably you have not yet drawn down the mortgage .. and they normally only go to 85% of the value when doing an equity release. IIB will go to 90%.

is this property your Private place of residence ?
Als few lenders will agree to an equity release on your PPR for business purposes....

also not all lenders will do interest only on your PPR. who do you have mortgage approval for the 280k with ?
 
Re: Equity Release - New Company

I have the nod from Ulster bank thanks.


LM
 
Re: Equity Release - New Company

ulster bank will do up to 85% equity release , once you've had a mortgage for a minimum of 12 months.
 
Re: Equity Release - New Company

LouthMan said:
Hi People

I have purchased an apartment and it wouldn't be ready until next spring. My Mortgage is 280K and i reckon when i move in the place will be worth €365K. If i wanted to take out some Equity to startup a new Company. Would i only get 92% of the Equity, do i have to wait until i live there for a certain period of time ? Can i put the mortgage interst only after a couple of months ?

Thanks
LM
Click to expand...

Just out of interest where did you buy the appartment, all I hear about is how appartments are "bad buys" in that some people think they are not going to increase in value much. Yours will increase by 30% over about 6 months?
 
Re: Equity Release - New Company

Hi

I purchased this apartment in Oct '04 for 305K
Next door they are going for 345K at the moment, so by next spring i reckon 360K but see what happens. I purchased on the Navan Rd at the back of the Half way house pub.

LM
 
Re: Equity Release - New Company

LouthMan said:
Hi

I purchased this apartment in Oct '04 for 305K
Next door they are going for 345K at the moment, so by next spring i reckon 360K but see what happens. I purchased on the Navan Rd at the back of the Half way house pub.

LM
Click to expand...

Right, thought wrongly that you paid 280. Yeah, I'd say you will be right about your predictionn.
 
Re: Equity Release - New Company

If starting a new company involves you leaving your existing job, you will find it difficult to convince any lender to offer you a further advance on your mortgage for this purpose.

Liam D Ferguson
www.ferga.com
 
Re: Equity Release - New Company

Thanks Fergal but how do people fund new Companies ?
 
Re: Equity Release - New Company

...generally out of accumulated savings. Banks are notoriously reluctant to provide seed capital finance for new enterprises unless the promoter puts up a substantial proportion of equity from their own resources.
 
Re: Equity Release - New Company

Thanks for your reply. I work for Franchise and i do about 50% of the sales (4-5 sales people) so i am very familiar with the Sales process and i was here for the start. I am thinking of setting this up in another City in Ireland. I reckon 250K startup. Would the banks offer 50% or more ??
 
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