Releasing equity...is it worth it?

wingobins

Not sure if this is the right place but I'm after some advise please. My parents are both in their late 60's & retired. Mum is in bad health but they have now paid off their mortgage. Each month they are struggling to pay bills and counting the cost so are now thinking of releasing equity and hoping to still live in the house. I'm worried they might get moved out of the house if they do this but I hate seeing them struggle. The house is an ex-council house and can't be worth that much. Is it worth them doing this and if so...can they just release so much of it? Can they both live in the house till they pass away? TIA

Thrugelmir

If they are on a low pension income. Maybe worth checking that they are claiming all the entitlements they should be. As with no mortgage their outgoings should be manageable. So maybe worth running through their budget as well.

Senior_Paper_Monitor

Part of the 'equity release' process will check their entitlements (and the impact that equity release will have on these) as well as helping them with their budgets.

They would probably be able to borrow about 40 - 45 % of the value within equity release at this stage (for which they sound initially as ideal candidates - not often I say that).

The purpose of equity release is to protect the right to remain for as long as it is needed - they would not be thrown out. You need a broker/adviser who is both equity release qualified and whole of market. Low value and maintaining enough to support for lifetime help may be a problem, but probably not a stopper.