Equity Release for homeowner

mongo_bongocat

Hello all - I hope I haven't posted this in the wrong place.

My mother is having problems with her house. The roof basically needs replacing and there's a lot of penetrating damp all over the place (i.e. crumbling, damp plaster on walls). My question revolves around equity release, which in my eyes is a loan in another guise. Mum does not have the savings to actually go ahead and get the work done (which could run into tens of thousands of pounds) and the rest of the family don't have that sort of money sitting around either.

I've searched around the site and cannot find any facts and figures on this arrangement (I'm sure someone has done something on the subject somewhere on the site). Does anyone have any opinions or experience with equity release?

I don't think the insurers will help with this (they were my first port of call and are sending a surveyor around, who, though probably won't be able to get us a claim, will tell us the damage).

Thanks in advance!

sukey13

Equity release is not a good idea in my opinion. They roll the interest up and you end up with a massive debt. Is there any chance she could get an advance from her mortgage company or remortgage instead to get the work done? Hopefully the insurance may help and she wouldn't have to bother.

njtkc

Yep I agree..........equity release is a very specific type of mortgage and as an X-mortgage broker I have only ever recommended this twice.
In my opinion it's suits elderly people with no beneficiaries, cause basicially you could find yourself not owning your own house and just having the right to live there during your lifetime.
Not sure what age your mum is or health condition but she could try a grant if it's that bad, but it is hard to comment factually without all the information.
I would perhaps visit your bank or building society for some advice, but only use someone you can trust as there's plenty of people out there just interested in lending money for their benefit not yours.

mongo_bongocat

Thanks for you help - A grant sounds like a promising avenue.