Equity release

anonymousx3

Hi, I'm 22 and inherited a home from parents. Unfortunately, it's not in a sell-able condition at this present and does need quite a bit of amends before it could reach that stage. I was wondering if it's possible to get equity release in some form. I have checked but have only found services which provide equity release for pensioner homeowners.

Thanks!

motherov3

Hi, we were in the same position as yourself , inherited a house not touched for 30 so years and didn't want to sell. We released 30k by simply 're mortgaging with c&g as they had the best interest rates at the time. So if you want to stay put and live there then 're mortgage with a residential mortgage. If you don't want to live there but want to release some equity to do it up or purchase another property get a buy to let mortgage instead. 10 years ago our house was valued at 90k and they gave us 30k . You have to leave 10% equity in the house so you can release quite a sum if you want to. Hope this helps :rotfl:

BitterAndTwisted

You're not looking for equity release but a mortgage. If you own the property solely and outright (your parents had no outstanding mortgage on it) then you can apply for a residential mortgage, possibly for up to 85-90% of the current value to do it up before you sell it, if your earnings are high enough to support the mortgage-payments.

n.b. EVERYTHING is sellable at the right price. You might bot get back what you choose to spend on it, never mind make a profit, depending on what the local market is like. Some people actively look for keenly-priced homes they can do up later when they have the money

anonymousx3

I'm a bit worried about doing the mortgage thing since I probably won't find employment that would pay enough to keep up with payments, unless they were really low. But still, I can certainly imagine times where I won't be able to pay monthly. Thus, is it possible to get a mortgage and buy a cheap property and rent one of them out to pay for the mortgage? I suppose what I'm asking regarding this is, how can I avoid a pitfall as best as possible (i.e. avoid losing the property when trying to get money out of it)?

kingstreet

You can't borrow money if you cannot prove you have the income to pay it back.

dimbo61

How much work does it need ?
If you are only 22 you can take a mortgage over 30 years.
You have the shell and for £30/40,000 you should be able to totally refurbish a property to modern standards with gas central heating, double glazing, new kitchen and bathroom.
Rent out one of the rooms to a lodger to cover some of the mortgage and bills.
If the house is big enough have 2/3 lodgers

anonymousx3

dimbo61 wrote: »

How much work does it need ?
If you are only 22 you can take a mortgage over 30 years.
You have the shell and for £30/40,000 you should be able to totally refurbish a property to modern standards with gas central heating, double glazing, new kitchen and bathroom.
Rent out one of the rooms to a lodger to cover some of the mortgage and bills.
If the house is big enough have 2/3 lodgers

Quite a bit, about 5,000 - 8,000 worth is needed for repairs/renovation. A friend says less than 5,000. Mostly flooring (carpets), walls need re-plastering, doors replaced, about two windows need replaced, and a new kitchen.

What if I missed payments over the 30 years? Is the 30 years a deadline, such that it must all be paid back by that time so they will let pay it all whenever and however, so long as it's paid back?

anonymousx3

help please? is it possible to get a mortgage which allows one to pay within a deadline? (thus, if they miss a payment date or such, it only matters as long as they have it paid in full within the deadline)

poppysarah

anonymousx3 wrote: »

Quite a bit, about 5,000 - 8,000 worth is needed for repairs/renovation. A friend says less than 5,000. Mostly flooring (carpets), walls need re-plastering, doors replaced, about two windows need replaced, and a new kitchen.

What if I missed payments over the 30 years? Is the 30 years a deadline, such that it must all be paid back by that time so they will let pay it all whenever and however, so long as it's paid back?

Are you going to live in it?
Had they been living in it?

Mojisola

anonymousx3 wrote: »

Hi, I'm 22 and inherited a home from parents. Unfortunately, it's not in a sell-able condition at this present and does need quite a bit of amends before it could reach that stage.

anonymousx3 wrote: »

Quite a bit, about 5,000 - 8,000 worth is needed for repairs/renovation. A friend says less than 5,000. Mostly flooring (carpets), walls need re-plastering, doors replaced, about two windows need replaced, and a new kitchen.

Of course it will sell. An estate agent will tell you what it would be worth if it was in good condition. Get some realistic estimates about the work that needs doing. Reduce the EA's estimate by the second and put it on the market.

anonymousx3

poppysarah wrote: »

Are you going to live in it?
Had they been living in it?

I'll be living in it