?Loan/?Equity Release

bridgetward

I would be very grateful for some advice: I am retired and own my own home outright. I wish to release/borrow approx £20,000 in order to have work done to my home so that I can sell part of it as a separate dwelling. The work will hopefully take no more than 6 months, 12 months at a push so I would be looking to repay this amount within 12 months. Is a personal loan advisable or equity release. Obviously I do not want to incurr penalties for early repayment.

lynzpower

HAve you already got planning permission for this work?
I ask this as there is no point in raising the cash if you cannot get the permission, if you dont get the right permission it will cost you a blinkin fortune in making good later.

My feeling is that a personal loan is more advisable, but i suggest neither till the planning permission is in place

bridgetward

I've spoken to an Architect who doesn't think there'll be any trouble getting pp but will wait until it's definite before I borrow money.

EdInvestor

Since you will repay on sale of the separate dwelling, and the amount is too small for a normal mortgage, the personal loan looks the way to go.