Release of Property

A Release of Property is when a borrower wants to release one or more of the properties from their historic multi-property account. All the properties in the portfolio are held under a single mortgage account, with the rental income and loan to value (LTV) being averaged across the portfolio. The entire mortgage balance is secured against all the properties held and individual loans aren’t linked to specific properties.

Our historic multi-property account range was withdrawn in December 2008 and additional borrowing is no longer accepted. However, properties can be released and substituted from the portfolio. Following the withdrawal of this type of account, we now lend to portfolio landlords on a ‘one property, one account’ basis.

Releasing a property allows one or more properties to be sold or remortgaged without fully redeeming the portfolio mortgage account. If you want to release all properties in a portfolio at the same time, a Release of Property isn’t required.

Use our Release of Property calculator which provides you an estimate of the amount required to release your property from your TMW portfolio.

Requesting a Release of Property

You can request a Release of Property directly or instruct a solicitor or broker to act on your behalf. If you do instruct a solicitor or broker to act on your behalf, the relevant third party authority section of the application form will need to be completed. Completion of this section of the form will allow your solicitor or broker to have authority only in relation to the Release of Property request.

There’s an administration fee of £140 to release a property. If a whole portfolio account is being redeemed, the administration fee will be £140.

How long does it take to receive a quote to release a property?

The final quote will take approximately 20 working days, from receiving your request to sending the final quote. However, this depends on the overall size of the portfolio and the valuations required, as detailed below. Failure to fully complete this application form may delay the Release of Property figure.

Release of Property application form

Complete this form to apply to release a property from a Portfolio account with The Mortgage Works.

Download application form

Release of Property calculator

Find an estimate of the amount required to release your property from your portfolio with The Mortgage Works.

Use our calculator

Frequently asked questions

Is a new valuation required? This will reveal additional content

Yes, all properties held under the portfolio require an up to date valuation. Firstly, we’ll attempt to carry out an office-based valuation. If we can't get a valuation this way, we’ll instruct a physical valuation inspection, which we'll pay for. This may mean that a mixture of valuation methods may be used.

If you believe the office-based valuations on the portfolio aren't accurate, you can choose to pay for physical inspection valuations. This type of valuation will be required on all properties within the portfolio. This may reduce the Release of Property figure, however it may also extend the time before we can provide figure to you.

Office-based valuations - We’ll initially look to complete an automated figure which doesn't require a valuer to visit the property. If this is possible, this'll be used in the Release of Property calculation and our systems will be updated to reflect the new values. This may mean the LTV will change on the account.
Physical inspection valuations - If we can't get an automated figure, we’ll instruct a valuer to visit the property. No fee will be charged if we’re unable to complete an automated valuation. Our system will be updated to reflect the new values, which may mean there may be changes to LTV or rental coverage.

How is the Release of Property figure calculated? This will reveal additional content

We’ll provide you with a Release of Property figure that is calculated to maintain the LTV and rental cover. The LTV and rental cover are based upon the last valuations carried out by us and the current mortgage balance outstanding.

We’ll use a stress rate of 5.99% when calculating the rental cover, which may be different to the interest rate on the mortgage account. We don’t allow any increase in LTV or reduction in rental cover following a Release of Property, however, new valuations may change the LTV and/or rental cover.

You can let us know which loan(s) is to be repaid in the Release of Property application form (unless a loan has expired). An early repayment charge maybe applicable to certain loans held within the portfolio and we can provide details if required.

Once we’ve calculated the Release of Property figure, if you haven’t let us know which loan(s) you want to be repaid, we’ll apply the funds to the loan with the lowest early repayment charge and highest interest rate. However, if a loan has reached the end of its term, this will always be repaid first.

An administration fee will apply for the Release of Property application, please refer to our current Tariff Guide. Any arrears on the account will also be taken into consideration when calculating the figure.

Can I request a quote for more than one property? This will reveal additional content

Yes, if you’re unsure which property in your portfolio to release, you can also request individual Release of Property figures for each one. If you want to release more than one property in your portfolio, we can provide you with figures to enable you to do that at the same time. If a figure for multiple properties is provided, all properties being released will need to complete on the same day for the quote to be valid.

How long is the quote valid for? This will reveal additional content

The Release of Property figure is valid for 90 days from the date that the quote letter is produced. These can’t be extended, so if the 90 days has expired a new request will need to be submitted.

Will my direct debit be automatically amended? This will reveal additional content

This will depend on when the Release of Property is processed and when your next direct debit payment is due. If there isn’t enough time to change the direct debit for your next payment, a refund will be issued (if applicable).

Can I remortgage a property to The Mortgage Works from a historic multi-property account? This will reveal additional content

Yes, you can remortgage a property to us from this account type to a ‘one account, one property’ basis. We’ll treat this as a standard remortgage application, which means that the property will need to be re-valued, the remortgage offer will need to be approved (whilst the Release of Property quote is valid) and solicitors instructed.

If the Release of Property quote has expired, we’ll issue an updated quote. This may be different from the previous quote as it’ll account for any updated valuation information available at the time. You’ll also need to select a new product because the product linked to the historic multi-property account isn’t portable for this purpose.

We’ll need a Release of Property quote first. When this has been produced, contact our Buy to Let team by calling 0345 607 30 21 to submit a new remortgage application. Please ensure to let us know that this is the purpose of the application.