Releasing funds to build new home from existing one

B

bakedbean

Registered User
Messages
14
Hi all, I hope you can help with a small query!

My partner and I own our apartment outright and we are now hoping to buy a plot of land and build. My question is: what sort of financial product would allow us to release equity from our home to raise funds for the build? Would it be classed as a new mortgage, a re-mortgage or something altogether different?

BTW we don't want to sell the apartment if possible.

Thanks!
 
If the new finance is provided by your current lender then it would be classed as an equity release.
If from a new lender then it would be a remortgage with equity release.
The actual descriptive term used is not important, whichever route you go you will be giving a lender a new charge or a bigger charge over your existing property.
 
You need to go to a lender/broker and advise that you want to use your apt as security for an equity release for a new build.

The lender will assess your mortgage application based on your mortgage eligibility and value of the apt.
 
You must log in or register to reply here.
Back
Top