Unencumbered Buy to Let Remortgage for Over 55s
At Rockhopper Later Life Finance we help landlords aged 55 and over remortgage a buy to let property they own outright. An unencumbered property is one with no mortgage on it. Putting a buy to let mortgage in place lets you release some of the value held in the property, which you can use for a range of purposes.
We work with customers who are:
- Own a rental property outright and want to release some of its value
- Want to raise a deposit towards buying another rental property
- Need funds for improvements to the rental property or for other plans
- Are reorganising their finances in later life
- Have been told their age is a barrier to a new buy to let mortgage
- Want to understand how much they may be able to raise
- Are comparing a buy to let remortgage with other ways to raise funds
Owning a property outright is a real achievement, and deciding whether to borrow against it again is a considered choice. We explain how an unencumbered buy to let remortgage works, what it depends on, and what the alternatives are, so the decision sits comfortably with your wider plans.
An unencumbered buy to let remortgage means taking out a new buy to let mortgage on a rental property that currently has no loan against it. You receive the amount raised as a lump sum, and you repay the mortgage over an agreed term. Because there is no existing mortgage to clear, the full amount raised is available for your purposes.
As with any buy to let mortgage, the main test is usually whether the rental income covers the payments by the margin the lender requires. The amount you can raise depends on the value of the property, the rent it produces, and the lender’s loan-to-value limit, which is the loan as a percentage of the property value.
Most buy to let mortgages are not regulated by the Financial Conduct Authority. Where you let to a close family member, the mortgage may instead be treated as a regulated contract, and your adviser will confirm how your case is treated. Where any part of the funds is used to repay other debts, spreading that debt over a longer term can mean paying more overall.
A buy to let remortgage is one way to raise funds. Depending on your circumstances, a further advance, a different ownership structure, or another route may suit you better. Tax can be a significant factor, and we may suggest independent tax advice alongside our mortgage advice.
The Process
Your first conversation is an informal discussion about the property, why you want to raise funds, and your circumstances. This helps us focus on lenders whose criteria fit your case.
We complete a full fact-find covering the property, the rent, and your plans, and we consider alternatives to a remortgage. We then provide a written recommendation explaining our reasoning.
Every case is different, and the pace is yours. We keep you informed at each stage.
Speak to a Buy to Let Specialist
Call 0203 621 5696
Lines open 9am to 5pm Monday to Friday. Alternatively, complete the enquiry form and we will call you back at a time that suits you.