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home reversion advise for parents aged 61 £75,000 needed from property worth £145000
chrisjoanne
Posts: 159 Forumite
Hi
I'm looking for advise for my parents.
I would like to know which companies can help my parents with home reversion. Their property is on the market at £145,000 and they need to pay off their mortgage of £61,000 in 3 years time (at present they only have an interest only mortgage with no means to pay it off except with the equity in their property).
They would like to take out £75,000 to pay mortgage and a loan which would give a home reversion company around 50% ish of property.
As they are only 61 would a company help with this as Norwich Union state that the youngest client needs to be 65.
I am uninterested in the fact the property could be worth nothing in inheritance etc when they die or sell - what I am concerned about is the mortgage needs paying in 3 years for them.....somehow.
Cheers in advance.
Chris
I'm looking for advise for my parents.
I would like to know which companies can help my parents with home reversion. Their property is on the market at £145,000 and they need to pay off their mortgage of £61,000 in 3 years time (at present they only have an interest only mortgage with no means to pay it off except with the equity in their property).
They would like to take out £75,000 to pay mortgage and a loan which would give a home reversion company around 50% ish of property.
As they are only 61 would a company help with this as Norwich Union state that the youngest client needs to be 65.
I am uninterested in the fact the property could be worth nothing in inheritance etc when they die or sell - what I am concerned about is the mortgage needs paying in 3 years for them.....somehow.
Cheers in advance.
Chris
0
Comments
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Strongly advise that they contact Age Concern or help the aged for advice.If you've have not made a mistake, you've made nothing0
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I can't help wondering if there is a bit more behind their story - they are nearly retirement age, they only have an interest only mortgage and they want to borrow £14K more than their mortgage amount. So I guess that's either to consolidate debts or provide an additional income to tide them over until retirement?
The figures on the home reversion plan look a bit optimistic to me, just on a gut instinct - if their home is marketed at £145K, the realistic price would probably be, what 10% less, and if the home reversion company was to work on 20% less than that value, you might be getting closer to £105K, so a lot more than 50% (that's just speculation on my part, I have no experience of this whatsoever!)
If your parents have got substantial debt, I think the first thing you should do is tell them to talk to one of the debt advice charities - there may be other options available, so they need to have the full picture before they decide anything.0 -
If you've have not made a mistake, you've made nothing0
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