It is worth beginning here with a caveat – you need to tread very carefully around the labels being used in this space of the market.
It is possible to take out an Equity Release loan (a lifetime mortgage) on a buy to let property. So, if you are retirement age and own such a property (which you let out) you might be able to use equity release, in a fairly conventional manner.
However – most Equity Release lenders do not allow this, so the market is limited. Plus, those lenders that can facilitate this, typically have more restricted terms.
The reason you should be wary is that in some cases promoters of mortgagers or lending may generically use the label equity release to denote facilities to leverage against the equity in a single property or portfolio of properties.
In some ways, buy to let mortgages stand somewhere between a residential and commercial property description, as the rental aspect confers a business transaction.
So, the buy to let property has a potential income (whereas your home does not, it is where you live). This income presents a means to repay the costs of borrowing. In this case the age of the home owner (or landlord) might well be irrelevant – or at least less relevant – to a lender, so borrowing options, in this case, can be much greater, or wider, than normal homeowner mortgages.
“Releasing equity” from a buy-to-let property might not have anything to do with Equity Release (as in a lifetime mortgage). Hopefully, this makes sense and you can see the difference?
As a landlord you may have the option of an Equity Release loan, but you will also, have potentially many other options, and these should be explored alongside.
Equity Release
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
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