Equity release to buy another House closer to Family

debeast

Hi there,

I'm writing on behalf of me Nan

Background

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Has an estate worth approx 500k (nearly all property) 1/2 kept in Trust to avoid Inheritance tax.

Basically she would like to use the properties as income from buy to let still but buy a house near us

Question

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How can you get a mortage when your 80+ ? Or is there a way of releasing equity in equisting properties to be able to buy one down by us?


Any help will be great

Thanks :P

/beastie

EdInvestor

Why doesn't she sell one of the properties near her (perhaps the one she lives in?) and use the money to buy one near you?

sebastianj

I think EDinvestor has got the wrong end of the stick

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She only has one property I think. There are companies who may offer her the loan and I think it will be best for her to rent a place near you and find tennants for her place.

Tale financial advice.

debeast

Lo there
Thanks for the replies looking for a bit more detail on what exactly are her options.

She has a few properties which pay her retirement income from rent.
She won't sell as they way they are built they are interconnected so it's an all or nothing sale.

and she would like to Buy near us rather than rent

Any ideas? And yep always take finacial advice but always come here first!!! It's good to know the right questions to ask!

thanks again any more help would be gr8

/beastie

EdInvestor

She has a few properties which pay her retirement income from rent.
She won't sell as they way they are built they are interconnected so it's an all or nothing sale. and she would like to Buy near us rather than rent

Are these an HMO ( house in multiple occupation)? Many people are selling these now because new regulations have come in which are going to be very expensive to comply with.

Equity release won't work for her, these plans are for owner occupiers.

Perhaps you could take out an i/o mortgage on the property near you, and she could pay 'rent' to you which covers the interest, principal to be paid off from inheritance when she passes away.Adjust her will to resolve any anomalies in re other heirs?

debeast

Hi there

Sorry should have given more detail to start.
3 are business premises
2 are flats
and 1 is her home

But they are all interlinked in some way shape or form.

I/O mortage might be a very good idea though!!

thanks for the advice

/beastie

EdInvestor

debeast wrote:

Hi there

Sorry should have given more detail to start.
3 are business premises
2 are flats
and 1 is her home

But they are all interlinked in some way shape or form.

If they are separate floors in a converted builidng ( eg bus premises on grd and basement, Mum on 1st floor and top 2 flats let to tenants) one thing she could consider is creating long leases and flogging off one or more of the flats, remaining as freeholder for the rest of the building.

debeast

Another very good idea

Thank you again

/beastie