My portfolio has 3 properties with decent equity. Should I remortgage them all at once, or stagger it to release equity for a 4th HMO conversion project, and what are the tax implications of each approach?
Quick Answer
Remortgaging multiple properties for equity release to fund an HMO conversion requires strategic planning. Simultaneous execution can simplify paperwork but might exhaust borrowing capacity quickly. Staggering allows for managing cash flow and re-evaluating options, but both approaches have significant tax implications, particularly for Stamp Duty Land Tax and potential Capital Gains Tax if a sale occurs.
About This Topic
Strategically remortgaging 3 properties for equity release to fund an HMO conversion involves navigating lending criteria, potential 5% SDLT surcharge, and tax implications. Decide if staggering or simultaneous remortgages suits your financial goals by checking BTL rates (5.0-6.5%) and stress tests.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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