Early redemption fees, worth it?Make Text Bigger
I have managed to hang on to 2 properties which I could not sell during the credit crunch. It meant that I bought a smaller residential property to live in, but it is now providing a good 2nd source of income and possibilities for the future. One of these is in Vauxhall / Nine Elms, and has done pretty well with the redevelopment of Nine Elms. Unfortunately, 2 years ago I went for a 5yr B2L fix rate, with 5% early redemption (£20k!), not thinking forwards that I would be in this position now. I would like to remortgage to a lower rate, and take out enough money to buy 2 more rentals in another area of London where I can still buy a terrace house for £250k.
Has anyone else done this? Can you use the redemption fee as a loss against tax for future years? If so, in the long term I think this will be worth it as it will give me a growing portfolio.
My alternative is biding time waiting until 2018 to save the 5% fee.
Thanks for listening!
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