I have a property that we purchased for £62500 and had a mortgage of £50000. We recently did some work on the place which now means it is valued at £95,000. We remortgaged the property and released £21,250 from the property.
I am trying to work out how to reflect this. I have :
- Recorded the mortgages against fixed assets
- Recorded a property expense for the deposit and assigned the payment to fixed assets
- Updated the value of the property within the property record
- Closed the old mortgage and opened a new mortgage with an equity release of £21250 - These have been posted to fixed assets.
How do I:
- reflect the £21,250 being paid to me whilst still keeping it assigned to fixed assets too? Would this be other income?
- Reflect the additional equity not released against fixed assets?