Releasing equity on an unencumbered property to refurbish another property is not especially complicated in and of itself—but when the properties are separated by the Atlantic Ocean, a layer of complexity is definitely added!
I was recently approached by a 44-year-old Irish national looking to do just this. My client lived in New York, but owned an unencumbered buy to let property in the UK. He was looking to renovate and extend his New York home using the equity in his UK property. Having searched online for a suitable broker, he approached Enness for a conversation about how we could help. His work as a lawyer meant he was extremely busy, so he needed a broker who could work around his needs.
He was looking to do quite extensive works on his New York property, including internal works, garden landscaping and a basement conversion. His London property was valued at £750,000 and was rented out for £1200 per month.
He was paid in US dollars, and was already aware that he would struggle with approaching high street lenders because he was now living outside of the UK. He also had a limited time to arrange this finance, as he hoped to begin the works very soon.
Fortunately, our access to the whole of the lender market meant I was able to source a lender who can provide finance for US residents. This lender used his UK income from the property, which simplified the process immensely. I secured a 2-year fixed rate of 3.6%, using my excellent relationship with this lender’s business development manager to ensure the application progressed smoothly.
Due to the time difference, it was important I was able to work round my client—I liaised with him via email and arranged all phone calls to be at his convenience. I always endeavour to provide an excellent level of service for all my clients, so if you are working across time zones, I will always strive to work to suit your timetable. If you feel you could benefit from a further discussion about releasing equity from your home, please don’t hesitate to get in touch and I would be delighted to help.