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Start-up funding, large equity in home, no job

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  • 23-11-2015 6:41pm
    #1
    markjbloggs
    Registered Users Posts: 293 ✭✭


    Hi All,

    I am looking to fund a start-up using equity from my home. I have not had it formally valued but expect it to be €1.3-1.5M. Existing mortgage is €75k. Quit job 2 years ago so now banks will not touch me in terms of releasing some of this equity.

    Any ideas on how I could release €100k ?

    thank you
    M


Comments

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    #2
    jimmii
    Registered Users Posts: 14,810 ✭✭✭✭jimmii


    If the banks won't let you mortgage against it then hard to see how else you can release some of the equity. Have you actually applied or just assuming they won't? When I did that they were more than happy to give me the money and I was re-mortgaging for 50%!


  • Options
    #3
    pedronomix
    Closed Accounts Posts: 997 ✭✭✭pedronomix


    Under present banking rules, cashflow/income/capacity to repay are the primary key lending factors. Family home security is the least valuable to a bank. You might have a chance buying an existing business that can support the repayments but with a startup and no income, you have little chance. I would imagine you only option will be to trade down and release equity that way.


  • Options
    #4
    markjbloggs
    Registered Users Posts: 293 ✭✭markjbloggs


    Yes, without the steady income stream, I am hosed. Are there alternative lenders for this scenario?


  • Options
    #5
    dbran
    Registered Users Posts: 2,094 ✭✭✭dbran


    Have a look at this blog by the guys in Bullethq.

    http://www.bullethq.com/blog/bullets-ebook-how-to-get-100k-free-off-the-government/

    dbran


  • Options
    #6
    pedroeibar1
    Closed Accounts Posts: 5,108 ✭✭✭pedroeibar1


    The other pedro is on the money – family home is bottom of the pile for security purposes (always was). There are some lower tier lenders out there, mainly bottom feeders. Their rates are very high and not people you should consider as appropriate to have a charge on your family home. If you are really keen and fully believe in your idea, sell the home.


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