Hello! (sorry, this got longer than I expected..)
I’m trying to find out if it’s possible to finance the purchase of a (rental) property by leveraging the equity in existing (rental) properties - basically I’m looking for an “equity release” loan.
However, from what I’ve found out so far this seems to be impossible - at least in my situation! I’m hoping someone here might have a better answer than what I’ve been able to find...
I’m non-resident Irish citizen but own 2 fully paid for properties which are rented to reliable tenants - the same ones have been in situ for over 5 years now...
This property that I’m interested in would cost about half the total worth of the existing two. If that 3rd property were to be let, the rent from all three would easily (even after tax) exceed any loan payment due - even at more expensive BTL mortgage rates.
I had assumed that getting such a loan by using the 2 existing properties as collateral and paying it back with the expected rental income from all 3 would be possible but it seems not..
(I’ve already tried banks and mortgage brokers. The bank where I just last year finished paying a 15 year mortgage won’t touch me, despite an excellent payment record, because of new policies etc. re earning in Euros. I’m early 50’s, self employed too which doesn’t help, but, as the rental income should be paying any loan payments, I don’t see why this should even come into the equation..)
This seems like a pretty low risk scenario for a lender. I live in the U.S. where such loans (“HELOCS” - Home Equity Line Of Credit) against property equity are readily available and for up to 90% of the property value, yet I cannot find anything like it in Ireland that doesn’t require you to be resident or to have a non-rental income in Euros...
Even if I could find someone to loan me even 1/3 the value of my equity I’d be “happy”...
Am I missing something/looking in the wrong places?
I’m trying to find a solution quickly, so any ideas or pointers much appreciated!
I’m trying to find out if it’s possible to finance the purchase of a (rental) property by leveraging the equity in existing (rental) properties - basically I’m looking for an “equity release” loan.
However, from what I’ve found out so far this seems to be impossible - at least in my situation! I’m hoping someone here might have a better answer than what I’ve been able to find...
I’m non-resident Irish citizen but own 2 fully paid for properties which are rented to reliable tenants - the same ones have been in situ for over 5 years now...
This property that I’m interested in would cost about half the total worth of the existing two. If that 3rd property were to be let, the rent from all three would easily (even after tax) exceed any loan payment due - even at more expensive BTL mortgage rates.
I had assumed that getting such a loan by using the 2 existing properties as collateral and paying it back with the expected rental income from all 3 would be possible but it seems not..
(I’ve already tried banks and mortgage brokers. The bank where I just last year finished paying a 15 year mortgage won’t touch me, despite an excellent payment record, because of new policies etc. re earning in Euros. I’m early 50’s, self employed too which doesn’t help, but, as the rental income should be paying any loan payments, I don’t see why this should even come into the equation..)
This seems like a pretty low risk scenario for a lender. I live in the U.S. where such loans (“HELOCS” - Home Equity Line Of Credit) against property equity are readily available and for up to 90% of the property value, yet I cannot find anything like it in Ireland that doesn’t require you to be resident or to have a non-rental income in Euros...
Even if I could find someone to loan me even 1/3 the value of my equity I’d be “happy”...
Am I missing something/looking in the wrong places?
I’m trying to find a solution quickly, so any ideas or pointers much appreciated!