how can my M in Law raise cash from her house

kennif

my mother in law has paid up themortgage on her house but now needs to purchase the lease which expires in 5 years (eeek)time can you suggest ways she can get the required amount against the value of the house.she is 81
kenif

Toughluck

I f she has sufficient income to support the loan size and still be able to afforrd day to day living lenders like the Abbey have no limit on age.

CluelessJock

Alternatively those likely to ultimatley inherit the house could contribute.

EdInvestor

She could look into equity release ( lifetime mortgage,repayable when she dies and house is sold).

https://www.ship-ltd.org

kennif

how much would a £35000 mortgage cost?

EdInvestor

kennif wrote: »

how much would a £35000 mortgage cost?

Interest rates are much the same as ordinary mortgages. If she borrowed 35k and then lived for 10 years, the total repayable after she died and the house was sold would be 62,680 plus any fees charged to set up the deal.

It's cheaper if she has a "drawdown" plan, so thsat she takes the money as and when she needs it, rather than in one lump at the start. That way interest only starts to roll up bit by bit.
Of course might not be possible in this case.

feisty1

Equity Release is a serious decision as you are borrowing against the equity in your home. You should seek qualified financial and legal advice, you should also consider involving your closest family in any decision making
Equity release does not suit everyone. It is always worth considering whether funds could be raised affordably from other sources before choosing this option


I am an ER Adviser
You should note that this site doesn't check my status as a n ER 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.

simpywimpy

My dad is 78 and has a small mortgage with alliance and leicester on interest only. We pay about £220 a month I think for a 33k mortgage