Releasing money advice

Andy-1966 · 4 December 2017 at 6:47PM

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

ACG · 4 December 2017 at 7:12PM

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.

getmore4less · 4 December 2017 at 9:12PM

Andy-1966 wrote: »

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

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 · 5 December 2017 at 9:13PM

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 · 5 December 2017 at 9:14PM

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 · 14 December 2017 at 7:08PM

Yes..equity release.you will still inherit the house, you will just be liable for the outstanding loan

Andy-1966 · 14 December 2017 at 10:27PM

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 · 14 December 2017 at 10:32PM

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 · 14 December 2017 at 10:56PM

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 · 14 December 2017 at 11:28PM

danandjens_worldtravels wrote: »

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

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 · 15 December 2017 at 12:19PM

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

Releasing money advice

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