Buy-To-Let Portfolio Finance
How to free up funds you never knew you had.
One of the key factors in property investment is being able to
buy properties, or develop the ones you have when the time is right, which usually means getting suitable buy-to-let finance in place. However,
the right moment for the market is not always the best time for your capital
reserves.
If you are an experienced landlord or investor with a significant or mature
buy-to-let portfolio which is not highly geared there are some further,
excellent ways to free up cash. You will need to be sure that any mortgages on
your properties are not 'locked in' with current lenders to be eligible. For
alternative methods of funding here are a few ideas:-
Portfolio and trading, draw down and equity release facilities
These are specifically geared to meet the needs of developers
and investors - especially those wishing to build up a property portfolio. These
schemes allow you to free up cash at short notice giving you flexibility to
achieve purchases quickly and easily. All of them entail pooling the equity in
your current portfolio. They bring two main benefits:-
1. With a pre agreed facility you need only have the one
arrangement, thus avoiding the expensive and time consuming activities of
arranging a bridging loan followed by a mortgage.
2. You can also drawdown additional finance against increases via
open market values, planning gains or finished refurbishments. These give you
greater strategic flexibility, allowing you to purchase new properties quickly
and easily.
Further pre agreed facilities are available which will deliver
funds quickly, usually within 5 to 10 days - about the same amount of time as a
fast bridging loan. These are portfolio and trading, drawdown and equity release
facilities. All these solutions revolve around pooling the equity in your
current portfolio and allow you to borrow swiftly and simply at a pre-agreed
rate.
You can drawdown additional finance against increases via open
market values, planning gains or finished refurbishments. These give you greater
strategic flexibility allowing you to purchase new properties quickly and easily
without having to arrange a bridging loan and a mortgage. Loan to valuations
vary.
Expect to pay from bank base interest rate plus 1.5%.
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