Advice needed re funding small extension (Edited Title)

MHamilton · 8 June 2017 at 4:00PM

I wonder if anyone can help me with a financial decision. I am a 70 year old widow and my mortgage is fully paid and the title deed is in my name. I don't have much free cash. My daughter lives with me and we are thinking of adding a small extension to give her a bit of privacy. Can anyone advise the best way of funding this, ie, equity release or she obtains a loan and I put a small amount to it or add her to the deeds and she would be able to go for a mortgage.
Or should I try for a remortgage and let her pay it. For information I also have another two adult children. Any advice would be appreciated
kind regards, Margaret

National_Debtline · 9 June 2017 at 2:50PM

Hi Margaret,

Sounds like you need some financial advice. You will have choices in a situation like this, and the more information you have the better (value of the property, quotes for the extension etc). Realistically, you are unlikely to be able to re-mortgage in your name if you have retired, so that idea would only work if your daughter got a mortgage in her name. However, this could then cause issues with things like ownership.

And, as hard as it can be to say, you also have to consider what would happen if she couldn't maintain the payments, in this scenario. None of us know what is around the corner, and if she were made redundant, and couldn't maintain the payments, you could put your home at risk of repossession.

Equity release may pose other problems, so I would suggest you try and get some independent financial advice. You can start here www.unbiased.co.uk but please be aware there can be fees for this type of advice. Best of luck,

Laura
@natdebtline

Advice needed re funding small extension (Edited Title)

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