What happens to my 100k equity when I relocate?
I own a flat bought for £340k; interest-only £240k mortgage with £100k equity. I want to buy a new flat worth about the same in a different area, however I am not looking to sell my current flat. I want to keep it, get a buy to let mortgage and let it out. What happens to my 100k equity when I relocate? Does it move with me or stay in the flat I'm looking to let? What if the flat has increased in value, but as I am not selling, how can I realise my increased equity? If the flat is deemed by my buy2let mortgage provider to have gone up in value from 340k ( when I bought it) to 400k and I borrow 240k as a buy2let mortgage, will I have to come up with 160k as a deposit? Doesn't that mean I have lost 60k in equity when I eventually sell the property (assuming I sell for 400k)?
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