Can we use equity in Parents house ??

Senior_Paper_Monitor

Unless the parents are short on either cash or income I am not sure an 'equity release' product (life time use - accruing interest etc) would be more suitable than simply releasing equity by way of a standard mortgage.

Age may be an issue - but there are some options accepting borrowers well late into life.

Both have similar impact on some estate planning issues.

Neither would absolutely prevent moving at a future date (if a standard mortgage then subject passing affordability at future date would usually be the easier [perhaps read 'cheaper' for 'easier'] of the two for moving purposes).

I openly admit to not being a fan of 'equity release products', except as a product of last resort and/or where onward inheritance is not high on the list of priorities of the property owners.

dunstonh

I openly admit to not being a fan of 'equity relese products', except as a product of last resouce and/or where onward inheritance is not high on the list of priorities of the property owners.

Which is exactly how they should be considered and treated. They are the option of last resort.

leveller2911

telby wrote: »

leveller2911 wrote: »

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.


Where in my post did I suggest that???...... Feel free to Quote me .

CLAPTON

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?

trust doesn't come into it

you can absolutely guarentee that

-you won't marry and you wife be your next of kin
-you won't die before your parents
-you won't every get into debt and be sued an dhave your asset put a risk
-you won't have children and they become your next of kin

madness

Mips

Don't do equity release. Take as little from their property as you can - perhaps a small remortgage on it to give you some cash for your deposit, so that you can perhaps pay it back on their behalf whilst paying your own mortgage?

Equity release at 58 is very young, and if they live into their 70's.. well there wont be anything left!