Partially Redeeming the AFHOS Equity Loan

The AFHOS Equity Loan can be partially redeemed at any time after you have been in the property for 3 months. You will be required to get a valuation of the property from a qualified RICS surveyor every time you wish to redeem part of the loan. The minimum amount you can repay at any one time is 5% of the property value, and when requesting partial redemption 5% equity must be left in the property, therefore with this example the maximum partial redemption would be 20%, the final 5% redemption would be classed as 'full' redemption.

The example below shows redemption figures based on a property initially purchased for £200,000 with a £50,000 equity loan (25%). However, at the time of partial redemption the property has been valued at £250,000.

Original Purchase Price	£200,000
Original AFHOS Equity Loan (25%)	£50,000
Value of Property at time of partial redemption	£250,000
Value of Equity Loan at time of partial redemption (25%)	£62,500
Examples of Redemption:
5% redemption	£12,500
10% redemption	£25,000
15% redemption	£37,500
20% redemption	£50,000

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