Equity Release

LOUBS

Looking for a bit of advice on equity release
I am named as a third person on my parents mortgage and they are thinking of doing equity release.
My parents are aged 67 & 69 and wondering if they could still go through with this even though I am on the mortgage, I'm 40yrs old.
The building society we are with have not been very helpful as we had spoken to four different branches and they said they I could just come off the mortgage, after we had made an appointment to see an adviser, he then calls us to say that we cannot take me off and the parents would have to apply for a new mortgage and that would be over a shorter term because of their ages. Very frustrating!

mrsnobody

The usual process with equity release (lifetime mortgage) is that the borrowers' current mortgage is redeemed from the proceeds of the equity release loan. Providing you are not named on the deeds of the property, there should be no barrier to your parents proceeding with equity release, assuming that they can raise a sufficient amount to repay the current mortgage and subject to them and the property meeting lenders' criteria.

kingstreet

Presumably, if they are looking for a real equity release product, the proceeds will be used to repay the existing mortgage and to remove you from the ownership of the property (if needed) at the same time?

mrsnobody

Apologies, I think my previous post was a bit misleading. As per Kingstreet's post, even if you are currently named on the deeds this will not prevent the equity release going ahead. A Transfer of Equity at or prior to completion would be required to remove you. If you live with your parents, some lenders will ask for an occupancy waiver to be signed (this confirms you have no right to reside in the property after your parents have passed away or moved permanently into long term care).

Propertyauthor

The easy way to understand equity release is head to http://www.equityreleasecouncil.com/home/ they will help you and have lots of free information on their site, including an eligibility check.

LOUBS

Thank you all for your info I really appreciate all your help
It's made it clearer for me to understand and now going to pass the info onto my parents