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  • FIRST POST
    • MHamilton
    • By MHamilton 8th Jun 17, 4:00 PM
    • 4Posts
    • 1Thanks
    MHamilton
    Advice needed re funding small extension (Edited Title)
    • #1
    • 8th Jun 17, 4:00 PM
    Advice needed re funding small extension (Edited Title) 8th Jun 17 at 4:00 PM
    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
Page 1
  • National Debtline
    • #2
    • 9th Jun 17, 2:50 PM
    • #2
    • 9th Jun 17, 2:50 PM
    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
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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