Equity Release

renegade74

My parents are splitting up.

The house is worth £110,000.

My mum has done some research on the subject of equity release but it don't sound to good to me.
One company sent an information pack which gave an example of a couple who's property was worth £700,000. They got less than £400,000. Is this the going rate & are all companies like this?

The ideal situation would be for my dad to move out with a large lump sum & my mum to stay in the house with a smaller lump sum but to live rent free. Would this be possible?

Mum is 62, Dad is 57

Thanks for any advice.

renegade74

can anyone help?

UK007BullDog

Well, they looked at the wrong thing. As they are splitting up they do not have many options.

Do they currently have a mortgage on the home?

One option for they might be to sell the property and each taking 50% after all costs have been paid.

Another option is for one party to pay out the other 50% of the home. But they will then have to pay the mortgage of that payment. So their income will have to support that and they would need a lender willing to lend into their retirement.

They cannot do equity release as both would have to live in it and the value of the property is too low and they are both not old enough yet too. We are not allowed to advise on equity relase in retirement. You would need to see an expert in that. However it is not suitable for your parents from what you have told us so far. They would both need to live in the property.

What are their respective incomes?
Any mortgage on the property?