Page 10 - Grey Wall Brochure

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Amanda and Paul, 35yr old married couple.
The couple were concerned that pensions were not going to be available when they reached retirement age. They were home owners with a house value of £160k and an outstanding motgage of 80k to be paid over 15yrs. They did not have any savings to use to invest in property but they did have equity in their house.
They decided to use some of their equity to fund a property investment on a Buy-to Let basis. Their home was re-mortgaged for 115k over 15yrs, this released £35k of equity which they used to cover the 25% deposit and costs on the investment property. Their personal mortgage monthly payments increased by £237/mth.
The couple saw an immediate increase of their disposable monthly income of £63/mth. The greater benefit would be long term as after 15yrs
the released equity mortgage would be completed and they would benefit to the full return from the investment property which currently stands at £300/mth.
In addition to the rental income the couple will also benefit from the Capital Growth on the property which would be 100% theirs. capital Growth is simply the value the property will increase, so in this case the investment property was purchased for £120k if prices continue to raise at the current rate of 4% then in 15 yrs they are likely to have £80k extra equity in the investment property. This could be accessed by selling the property or re-mortgage.
The couple decided on a 5yr fixed interest rate mortgage which will allow them to release a projected 26k if the current growth rate od 4% continues.
Remember all this was achieved with an increased monthly income of £63/mth.