Releasing equity

mr_clarke

Hello there, this is my first post and i would like a bit of advice for my Mum.
When my dad died my mum purchased her council house with the money she received from this. any surplus money she gave to charity as she deemed it blood money. 20 years on she is time rich, but very cash poor. She is now talking of releasing equity in the house to live off. i am fine with her doing this but i am worried that she will left potless and possibly homeless if she does the wrong thing. I was wondering whether, there are any altenatives to equity release or if not, is it an acceptable and cost effective way of releasing capital. Also would my mum be liable for taxes if a lump sum found its way into her bank account.(say 20,000 pound)
Hope someone can give some advice Adam, cheers.

morag1202

Hi and welcome to the site.

I've just had a very quick search for "equity release" on the main site and I'm afraid it has not been covered in a guide, but martin does mention it in a blog written in 2006 - and he doesn't like the idea. The alternatives are an interest only morgage or a secured loan - both of which are covered by his guides.

Would she think of downsizing to release equity? or even moving to rented accomodation and investing the whole proceeds to give an income?

I think you will get more (and better) replies if you post again in the Silver Savers board.
This is the link

http://forums.moneysavingexpert.com/forumdisplay.html?s=&daysprune=&f=26

Good luck to you both.

mr_clarke

thanks for your help

seven-day-weekend

What is your muim's income at the moment and what is its source?

[Deleted User]

I suspect the detail of equity release is far too involved to get advice on a forum,you probably need to contact an independant financial advisor.
One comment I would make is that any capital raised in this way could/would have a NEGATIVE impact on means tested benefits.