All Topics / Overseas Deals / How can I release some of the equity in an investment property in London?

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of normacenormace
    Member
    @normace
    Join Date: 2008
    Post Count: 1
    January 14, 2008 - 1:52 pm

    Hi fellow investors,

    I have an investment property in London which is currently rented out and is positively geared. I am currently living in Melbourne, Australia. The lender of the London property is with HSBC.

    I just called the HSBC finance advisers in the UK asking them how much money they can lend me by using some of the equity that I have in my London investment property.

    I was told that "we don't release any equity on a property that is not your home of residence". This kind of shocked me. I mean, how can investors build up a portfolio like this?

    Do any of you own an investment property in London and have successfully refinanced / obtained some equity?

    Any guidance of how I can get some equity would be greatly appreciated.

    A little bit frustrated at HSBC…

    Thanks.

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488
    January 14, 2008 - 5:24 pm

    Don't know much about the UK processes and rules, but it sounds like you need a new lender.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 14, 2008 - 10:43 pm

    Norm I have answered your email on this. 

    Richard Taylor | Australia's leading private lender

    Profile photo of kaz101kaz101
    Participant
    @kaz101
    Join Date: 2005
    Post Count: 45
    January 19, 2008 - 11:25 pm

    HI Normace,

    I agree with L A Aussie in that you may need to change lender. I am part of a private property forum in the UK ( I used to live there ) and they are refinancing all the time. When I was moving out to Oz from the UK in July 2007 I remortgaged with Mortgage Express without any problem. I had to prove I was living in Australia (which I was so that wasn't an issue).

    Even when I was living there and trying to re-mortgage investment properties just to get lower interest rates some banks weren't interested so I went elsewhere.

    Regards,

    Profile photo of richard_81richard_81
    Member
    @richard_81
    Join Date: 2008
    Post Count: 1
    February 7, 2008 - 8:00 am

    normace,

    i have the same trouble you have had. in fact it sounds identical. i found it crazy that you cant release equity – like you said – how do you build a portfolio?

    i looked at changing lenders even but apparently you need to prove you live in the country.

    i enquired first about refinancing through my lender and they told me as soon as you give consent to let your property, lenders will not allow you to release more equity.

    i then enquired about changing lenders altogether and the only way around this is to satisfy certain criteria such as having a residing address in the UK (or living there).

    it sounds like Mortgage Express is the place to try.

    Please let me know how you go.

Viewing 5 posts - 1 through 5 (of 5 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.