What's the best way to release money from a property?

[NippyCrab]

I'm not 100% sure what the correct terminology is so I hope I am explaining it properly.
We are renting at the moment and want to start the process of buying a home. We have a flat, no mortgage and we wanted to use that flat, or the value of the flat as a deposit on a mortgage. Is this something that's possible? My stepson and his partner will be moving into the flat, rent free, to save for a house deposit.
Do we just search for a financial advisor who can organise this and also a mortgage?

Do you mean use the other property as security for the loan?

So you will take out a loan secured on the flat to use as a deposit for the 2nd property?
You won't be living there though so you may need to ensure the loan provider knows that, which could make it more tricky.
I hope you have looked into all the possible issues of being a ( sort of) Landlord as well though

I'm not sure, would that have to be a secured loan against the property to then go and separately get a mortgage? Would that not be more expensive?

@Hoppinggreen okay, so would a lender be reluctant to lend if we weren't occupying the property is that what you mean by tricky?
The kids are paying the utilities and are making plans to do it up, it will go to my stepson eventually anyway.

You either take out a mortgage of the flat and then use the cash to buy for your stepson, or you take out a mortgage on the property for your stepson and he pays the mortgage or rents off you? but I'd recommend seeing a solicitor to discuss the legal ramifications of each option.

I am not a Financial Advisor so I can't give you proper advice but while you can borrow against the value of your property it may be different if you don't intend to live there.
You also need to look at your responsibilities for the house even if someone else lives there whether they pay rent or not

Thanks everyone, we better get some appointments made and see what the options are.

Letting Someone Live in Your House Rent-Free in the UK | Fraser Bond Real Estate - Central London Estate Agents | Fraser Bond

You need to see a financial advisor, but you usually won't get a loan against a property rented (or not!) to a relative

Thank you, we better re think our plans, much appreciated x