Releasing equity from a Polish property

[Bonzo007]

Hi,

I bought an off plan apartment (using cash from increasing my UK residential mortgage) a few years back. It is now rented and has increased significantly in value. I am considering taking a mortgage out in Poland (I have been told I can release twice what I paid for the apartment) and bring the full amount back to the UK (I'm in Northern Ireland).

Although I'm not realising an asset surely £100K appearing in my account will raise a few red flags, so I'm wondering will I actually be due to pay any tax etc?

Thanks

 

[ecstatic]

yes it will raise red flags anything over 10k raises it.

whose financing you in poland

 

[Scruffy Man]

I am considering taking a mortgage out in Poland (I have been told I can release twice what I paid for the apartment)

GOODLUCK!!! Let me know how you get on, Polish banks are notoriously difficult to deal with and extremely conservative. From my experience they will only lend you a percentage of your original purchase price irrespective of when that was an how much the property value has increased by. Plus with the new Polish "RECOMMENDATION S" coming out in Jan 2009 which totally restricts lending the banks have already started to enforce it and are now reducing LTV's. Some have even stopped lending to investors!

Although I'm not realising an asset surely £100K appearing in my account will raise a few red flags, so I'm wondering will I actually be due to pay any tax etc?

you have not sold anything just refinanced so no tax will be due.