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    • Andy-1966
    • By Andy-1966 4th Dec 17, 5:47 PM
    • 4Posts
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    Andy-1966
    Releasing money advice
    • #1
    • 4th Dec 17, 5:47 PM
    Releasing money advice 4th Dec 17 at 5:47 PM
    Hi
    I am after some general advice. My mum is 83 and wants to get some money from her house. She has no mortgage, and lives alone. She is living on pension credit and finding it hard to cope.
    What options does she have that will enable her to release some money against the property?

    She wants to leave the house to me, and i would be happy to take on any payments after she's gone whenever that would be.

    Thank you in advance

    Andy
Page 1
    • ACG
    • By ACG 4th Dec 17, 6:12 PM
    • 15,907 Posts
    • 8,149 Thanks
    ACG
    • #2
    • 4th Dec 17, 6:12 PM
    • #2
    • 4th Dec 17, 6:12 PM
    Do you have your own Mortgage?
    How much is the house worth and how much does your mum want?

    Have you thought about equity release? No monthly repayments, but the loan does go up every month until a point at which your mum passes away or goes in to care. When she passes away, the property would be sold and the remainder paid to whoever is named in her Will (if there is one) or her next of kin if no Will assuming there is some equity in the property at the time.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • getmore4less
    • By getmore4less 4th Dec 17, 8:12 PM
    • 30,837 Posts
    • 18,445 Thanks
    getmore4less
    • #3
    • 4th Dec 17, 8:12 PM
    • #3
    • 4th Dec 17, 8:12 PM
    Hi
    I am after some general advice. My mum is 83 and wants to get some money from her house. She has no mortgage, and lives alone. She is living on pension credit and finding it hard to cope.
    What options does she have that will enable her to release some money against the property?

    She wants to leave the house to me, and i would be happy to take on any payments after she's gone whenever that would be.

    Thank you in advance

    Andy
    Originally posted by Andy-1966
    could you start those now and just loan her the money against the house(to avoid it getting eaten up by care).

    Sounds like even a monthly amount would help.
    • Andy-1966
    • By Andy-1966 5th Dec 17, 8:13 PM
    • 4 Posts
    • 0 Thanks
    Andy-1966
    • #4
    • 5th Dec 17, 8:13 PM
    • #4
    • 5th Dec 17, 8:13 PM
    Do you have your own Mortgage?
    How much is the house worth and how much does your mum want?
    The house is worth about £220k and she wants to borrow 30k Ideally we dont want equity release, she wants me to have the house when she's gone and i would then take on the debt/loan/equity

    The main thing is keeping the house when shes gone.
    I have a small mortgage on another property.
    • Andy-1966
    • By Andy-1966 5th Dec 17, 8:14 PM
    • 4 Posts
    • 0 Thanks
    Andy-1966
    • #5
    • 5th Dec 17, 8:14 PM
    • #5
    • 5th Dec 17, 8:14 PM
    could you start those now and just loan her the money against the house(to avoid it getting eaten up by care).

    Sounds like even a monthly amount would help.
    I don't have the money, is there a way of borrowing it against the property?
    • Mnd
    • By Mnd 14th Dec 17, 6:08 PM
    • 268 Posts
    • 291 Thanks
    Mnd
    • #6
    • 14th Dec 17, 6:08 PM
    • #6
    • 14th Dec 17, 6:08 PM
    Yes..equity release.you will still inherit the house, you will just be liable for the outstanding loan
    • Andy-1966
    • By Andy-1966 14th Dec 17, 9:27 PM
    • 4 Posts
    • 0 Thanks
    Andy-1966
    • #7
    • 14th Dec 17, 9:27 PM
    • #7
    • 14th Dec 17, 9:27 PM
    Yes..equity release.you will still inherit the house, you will just be liable for the outstanding loan
    Any idea who would be the best companies to use?
    • danandjens worldtravels
    • By danandjens worldtravels 14th Dec 17, 9:32 PM
    • 280 Posts
    • 204 Thanks
    danandjens worldtravels
    • #8
    • 14th Dec 17, 9:32 PM
    • #8
    • 14th Dec 17, 9:32 PM
    If you're mum takes money out of the hose, she'll have capital and it may make her pension credit stop or reduce. Get benefit advice before you do anything
    • danandjens worldtravels
    • By danandjens worldtravels 14th Dec 17, 9:56 PM
    • 280 Posts
    • 204 Thanks
    danandjens worldtravels
    • #9
    • 14th Dec 17, 9:56 PM
    • #9
    • 14th Dec 17, 9:56 PM
    Pension credit is £159 a week (likely some is her state pension and topped up to the £159). Council tax should be paid in full or almost full and tv licence free. Which bills is she struggling with, can she switch providers or go on any social tariffs as she is on pension credit, does she need help with insulation to bring the bills down? Is a water meter installed? Is she in any disability benefits, her pension credit should be more than £159 if she is?

    Are there any debts she could renegotiate?

    I'm not saying don't borrow money, it's entirely her choice and I can see a lump sum would bring her a financial comfort, but is there anything else that can change to ease the situation so she isn't struggling? There is lots of advice on these forums about reducing expenditure without it being about scrimping and saving, which at 83 I'm sure your mother doesn't want to do.
    • Keep pedalling
    • By Keep pedalling 14th Dec 17, 10:28 PM
    • 4,103 Posts
    • 4,466 Thanks
    Keep pedalling
    If you're mum takes money out of the hose, she'll have capital and it may make her pension credit stop or reduce. Get benefit advice before you do anything
    Originally posted by danandjens worldtravels
    At her age her PC should be subject to an indefinite assessment period so this should not effect the payment of that benefit, but you should double check this.

    Raising this amount of cash against the house and trying to keep it in the family is going to be a very difficult if not impossible trick to pull off.
    • Mnd
    • By Mnd 15th Dec 17, 11:19 AM
    • 268 Posts
    • 291 Thanks
    Mnd
    You could go to a independent financial advisors, or there are well known firms that provide this. I understand that you will get a initial consultation with no obligation to proceed. I would suggest that you attend this with you mum to make sure she is happy and you are.
    I will point out, as I understand it, suppose they will agree 35% as a amount you could release, you don't have to take all that, you can just take the minimum amount (and effectively leave the rest banked for use later in necessary) this goes a long way to keeping the added interest to a minimum.some products also allow will allow you to pay back some money, to again minimise the build up.
    I can't suggest any individual supplier's because we are not ready to do this, but it will be a tool of our retirement planning in possibly 10 years or so.
    Good luck. Mark
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