Releasing Equity to purchase another property

DadsHelper

Hi I am new to this and am seeking advise on how to help Dad purchase his housing executive house under the right to buy scheme.

Dad is 72 and currently in receipt of pension credits and DLA.

His house has been valued at 50K and has been awarded 24k discount.

How can he raise capital at his age?

We have a mortgage on our home valued at 195K, 40K is the outstanding amount left on mortgage.
We don't want to remortgage as we have a very good interest rate (1.09%)
Our bank has offered us equity release of 30K @ 3.29%. BUT we have told the bank it's for home improvements. ;)Can we use this money and lend it to Dad? Also can Dad then claim the interest in the form of housing benefit which would be used to pay off the 30K?

Any help or ideas would be much appreciated.

globalds

hmm ............

DadsHelper

Very helpful lol thanks

Fire_Fox

Please run an advanced search or stop trolling until you can come up with something original. :wall: There is no benefit to your father in converting a secure tenancy to the stresses, risks and costs of home ownership and debt at 72. As a responsible and caring child please discourage them from this path. Let you father enjoy his retirement, enjoy the time you spend together and stop being so money grabbing.

Housing benefit is for rent, mortgages you are on your own and can get repossessed if you don't pay. And you could get into trouble for mortgage fraud if you choose to lie to your lender. Feel free to gift the money to your father, then watch it vanish as his home is sold for care home fees.

dimbo61

1 mortgage fraud
2 Nice idea for the tax payer to pay for DADS mortgage
3 What happens if Dad goes into a nursing home ? You going to sell the house to pay for his care ?
4 I recently borrowed money from my Bank for an extension and they wanted to see the plans, planning approval, lots of photos of the build and turned up at the property when complete to see the finished work.

DadsHelper

Thanks but I find your money grabbing remark a little offensive. Surely I would be responsible for paying off any loan/mortgage. He would have no extra expenses I just wondered if there was a way around getting a little help with repayments. Surely agreements could be put in place to protect the likes of care home fees though being the caring child I would look after him. And yes I agree mortgage fraud could be an issue that's why I asked for help and ideas. On a more positive note can you suggest what would be the right way to go about securing the purchase of his home?

DadsHelper

Thanks Dimbo. Gee I'm taking a beating here lol. I am a taxpayer. Any loan would be secured on my home, not his. As for your borrowings for an extension it's a bit different surely when we don't require planning permission etc the bank has told us they don't need any quotations or onsite inspection. I guess my best option is to be honest about the purpose of the equity release.

Fire_Fox

DadsHelper wrote: »

Thanks but I find your money grabbing remark a little offensive. Surely I would be responsible for paying off any loan/mortgage. He would have no extra expenses I just wondered if there was a way around getting a little help with repayments. Surely agreements could be put in place to protect the likes of care home fees though being the caring child I would look after him. And yes I agree mortgage fraud could be an issue that's why I asked for help and ideas. On a more positive note can you suggest what would be the right way to go about securing the purchase of his home?

Only your FATHER can buy the property so only HE is liable for HIS mortgage and HE is liable for HIS maintenance. You cannot borrow against someone else's home, you can only GIFT the money to your father which means you cannot protect it. Help means getting more money from the taxpayer including teens on minimum wage which is under £5 per hour. They should pay your father's mortgage so you can inherit?

There is no right way, it is not possible without defrauding or scamming the council or a lender. If you bothered to run an advanced search as suggested this has been gone over many times by other money grabbing offspring. Since you are a rubbish troll I don't have to be friendly.

DadsHelper

Forgive my ignorance I did say I was new to this. I had to google "troll" lol and a very unfriendly TROLL you are indeed in the other sense of the word!!

breadlinebetty

Fire_Fox wrote: »

Please run an advanced search or stop trolling until you can come up with something original. :wall: There is no benefit to your father in converting a secure tenancy to the stresses, risks and costs of home ownership and debt at 72. As a responsible and caring child please discourage them from this path. Let you father enjoy his retirement, enjoy the time you spend together and stop being so money grabbing.

Housing benefit is for rent, mortgages you are on your own and can get repossessed if you don't pay. And you could get into trouble for mortgage fraud if you choose to lie to your lender. Feel free to gift the money to your father, then watch it vanish as his home is sold for care home fees.

You're wrong, Fire fox. Again.

Housing benefit pays both rent AND mortgage interest.

So you're not on your own with a mortgage - so stop trying to pretend otherwise.

breadlinebetty

DadsHelper wrote: »

Hi I am new to this and am seeking advise on how to help Dad purchase his housing executive house under the right to buy scheme.

Dad is 72 and currently in receipt of pension credits and DLA.

His house has been valued at 50K and has been awarded 24k discount.

How can he raise capital at his age?

We have a mortgage on our home valued at 195K, 40K is the outstanding amount left on mortgage.
We don't want to remortgage as we have a very good interest rate (1.09%)
Our bank has offered us equity release of 30K @ 3.29%. BUT we have told the bank it's for home improvements. ;)Can we use this money and lend it to Dad? Also can Dad then claim the interest in the form of housing benefit which would be used to pay off the 30K?

Any help or ideas would be much appreciated.

I think if your Dad has the right to buy - and you can raise the money - it's a good idea.

We're not talking hundreds of thousands here....just £26k. A snip!