Equity release?

HellsGranny

I'm looking for some info on this,

I have a problem, having inherited a house from my aunt, which I want to move to, but I am all assets and no cash, as my savings have had to go towards paying the Probate expenses.

Houses in my area are not selling at all well, but as I have no mortgage I was hoping to release some cash from the house I am currently in to pay mounting arrears in utilities, etc., and also to get me moved.

I cannot drive currently as I have cataracts, and I am the only driver in the family.

Cheers, HG

missile

I would suggest you would be cheaper / better getting a mortgage (if you qualify?).

Equity release is like a mortgage but of course you do not pay the interest. The interest rolls up quite dramatically over the years.

If your idea is to take equity release on your current property in the hope that the price will increase in future? I would suggest it is better to sell now, albeit at a knock down price. You could use some of the money to have cataracts done privately.

HellsGranny

Too old for mortgage, houses not selling at all in my area, hence the plea for info on equity release.

lisyloo

My MIL has had fairly prompt NHS treatment on cataracts, so I would certainly investigate that. It might be one of those "postcode lotteries" but it's not like it used to be.

Could you rent one of the houses?

Equity release will look very expensive.
May I ask how old you are as that's very relevant to equity release.

Willman_Rodders

Hi Hellsgranny,

With equity release you need to exercise caution. There are a number of earlier threads on this forum that deal with this tiopic.

The FSA have tightened the rules regarding selling this type of product and as a result many financial advisers (including IFAs) no longer offer the product. But there are some; I would recommend you find an IFA (Independant financial adviser) who has passed the specialist exam on equity release and ask them what fees they charge etc.

EdInvestor

How about a BTL mortgage on the property you won't live in, but will presumably rent out? That's not age dependant.

HellsGranny

Unfortunately, neither house is in great condition, so I need to sell one to fund repairs on the other. The problem being I need money now .

EdInvestor

Do you need much?Would a shorter term ordinary loan cover it?Is your income high enough to cover the repayments?

If so you could take the short term loan, use the money to move,do repairs on letting property and then fold loan into a long term BTL mortgage on the property funded by the rental income.

I would have a chat with your bank.They can take a charge against one of the properties for the loan.

McKneff

Am i right in thinking the op shouldnt have paid for the probate
and that it should have come out of the deceased's estate'
I only mention just in case there was other estate and it has gone to relatives.

missile

McKneff wrote: »

Am i right in thinking the op shouldnt have paid for the probate
and that it should have come out of the deceased's estate'
I only mention just in case there was other estate and it has gone to relatives.

Perhaps the aunt only left the house? If there were no other assets and the beneficiary does not wish to sell the property, I guess he/she has to pay.

royeee

missile wrote: »

You could use some of the money to have cataracts done privately.

This is a routine procedure nowadays so no real benefit in paying to have this done privately.