Can we use equity in Parents house ??

telby

leveller2911 wrote: »

Your parents may need the equity in the future themselves.Nuckle down, work hard and save like mad and stand on your own two feet ......

No one knows what the future holds , good or bad...........

Thanks for that gem of life advice, although not particularly helpful as an answer to the original question is it?.

Ladies & Gents, nothing has been decided, I am just throwing ideas about. My mum phoned me this morning and said "Look we have £250k equity in our house can you do some research on the internet and find out if there is any way that this could be of benefit"

Obviously we will take some proper financial advice, I just wanted to throw it out there to see if anybody knew anything.

Anyway, thanks for those who have replied.

dunstonh

Yes they are willing to sign their house over to me, therfore giving me £250k worth of equity to play with, but still not wanting to sell that house.

and

All comes down to trust though doesn't it?

It also comes down to tax and benefits as well, as already mentioned. It creates long term issues that can easily be avoided.

leveller2911

telby wrote: »

Thanks for that gem of life advice, although not particularly helpful as an answer to the original question is it?.

Truth hurt???

Its a forum don't ya know........

telby

Senior_Paper_Monitor wrote: »

telby wrote: »

Yes we all understand what it means.

And yes they also understand that I could then effectively sell their house and kick them out if I so desired.

All comes down to trust though doesn't it?[/QUOTE]



Sorry, but ....

No you don't !

No it doesn't !

.... and this point I give up - if you don't wish to listen it isn't compulsory (as you obviously know)

My lord you people are very unfriendly.

Do we all understand that if my parents sign me over the deeds to their house then they no longer own it, I do - Yes, I think for most people of reasonable intelligence that is fairly obvious.

Is it a good idea? I don't know, that's what I came here to find out. Advice seems to be no, and that there may be other (better) ways of going about things.

To be honest I am not wholly comfortable with my folks giving me their house to use for my own benefit, even if they are.

But it was just a question. Nothing more. Don't beat me up for asking it. If you don't ask such questions how will you ever see the full picture?

GMS

There are possibilities for you.
Do your parents have any cash? If so you may be able to apply for a mortgage where they would deposit funds with the lender.
Are they working? If so they may be able to remortgage to give you the cash.
They could look at Equity Release subject to age. This would give a lump sum but they would no longer own the property. Specialist advice would be needed for this.

As for postings suggesting you work hard etc this is irrelevant. I hope to be able to help my children in the future. You have parents who want to help you. Good on them.

Speak to a 'Whole of Market' broker, all of you together. Your parents will be recommended Independent Legal Advice which they can choose to take or decline.

Having equity is a million miles away from having cash but if it can be released then why not as long as all parties are happy.

Good luck with it

telby

leveller2911 wrote: »

telby wrote: »

Thanks for that gem of life advice, although not particularly helpful as an answer to the original question is it?.

Truth hurt???

Its a forum don't ya know........

Oh yes, I don't in any way deny you your right to express an opinion.

But to suggest we do not work hard or try to save every penny we can is simply untrue. But hey, lets not allow the facts get in the way of a good story.

It's spelt "Knuckle" by the way

telby

GMS wrote: »

There are possibilities for you.
Do your parents have any cash? If so you may be able to apply for a mortgage where they would deposit funds with the lender.
Are they working? If so they may be able to remortgage to give you the cash.
They could look at Equity Release subject to age. This would give a lump sum but they would no longer own the property. Specialist advice would be needed for this.

As for postings suggesting you work hard etc this is irrelevant. I hope to be able to help my children in the future. You have parents who want to help you. Good on them.

Speak to a 'Whole of Market' broker, all of you together. Your parents will be recommended Independent Legal Advice which they can choose to take or decline.

Having equity is a million miles away from having cash but if it can be released then why not as long as all parties are happy.

Good luck with it

Thanks for the info. Not sure how much cash they have, I've never asked.

Equity release is a possibility but not sure if age is a barrier (they are 58 & 64). Am also wary of how much they may "lose" using an equity release method. I seem to recall some horror stories going round a while back? Are these kind of schemes safe?

GMS

Age wise they will fit for Equity Release. As long as a decent compnay is used then it is 'safe'. Equity Release would allow them to remain in the property for life, rent free but would mean relinquishing ownership. Probably looking at around 25% of the value as a lump sum so needs to be thought through carefully.

Speak to a broker and get full info on all options.

telby

Interesting thanks. What would be the implications if they then wanted sell at some point in the future?

GMS

The ER company would provide a settlement figure. It is based on any increase in property valuation plus a percentage.

You would need to speak to a specialist regarding it. A broker should be able to refer you to a company.