Equity release SOS

getmore4less

If are three of you, all significantly younger then it may be a easier to raise funds if you have any equity.

What terms were the £100k on.

How much can she realistically afford per month?

How much can you realistically afford per month all together?

eldestofthree

complete muppett question alert:
I thought an equity release for this transaction was when you 'sell' the equity in the property which the company gets back when you sell it.
So if she gets a release of £100k , then the family would need to raise the remaining £80k to pay off the mortgage ?


Or am I completely A about F ?


I do not live with her BTW


thanks

Let_Us_See

It would help if you actually answered some of the questions you have already been asked. Without facts everything is conjecture.

TrickyDicky101

eldestofthree wrote: »

complete muppett question alert:
I thought an equity release for this transaction was when you 'sell' the equity in the property which the company gets back when you sell it.
So if she gets a release of £100k , then the family would need to raise the remaining £80k to pay off the mortgage ?


Or am I completely A about F ?


I do not live with her BTW


thanks

That's a home reversion scheme rather than a lifetime mortgage (both are 'equity release' products).

In the stated example, were your mother to release £100k she would still have the mortgage for £80k needing to be paid off. Of course, the mortgage company would not let your mother release any equity without arrangements made to repay her debt to it first.

Equity release is expensive though. Had you provided further details, perhaps someone could suggest a less costly alternative.

eldestofthree

Hi everyone
You are absolutely right , I have provided very bad information and I apologise , asking for help , but not being very helpful or detailed in my posts , F for effort.
So
59 year old single lady, self-employed with a small income – I am not sure about the state of her accounts
Living with 29 year old son , not working due to high level of medication and injury after car accident – currently in an entrepreneur government programme.
Value of house 400k
Mortgage ends June 2015
Value of mortgage £180k
Current offer for equity release or reversion £100K
At the moment ‘the family ‘ could raise about 50k
If she does the release the she cannot get a loan to make the difference
So I guess the options are : raise more money from the house
Re-mortgage my house for the remaining 30K ( not brilliant)
Or raise money from other family members but I really want to her to get this through on her own steam as much as possible.
Is there any product or service out there which might be better ?
As always and advise genuinely gratefully and I hope this post is better than previous efforts. thank you everyone for your time and patience

Let_Us_See

Accepting your mother's income is insufficient to obtain a residential mortgage, you are correct in your assessment the maximum amount available through a Lifetime Mortgage, aged 59, is C£100K leaving £80k balance to fund by other means. There are no magic wands and apart from assistance from family, downsizing maybe the only alternative. I am sure stress caused by continuing financial worries is worse than stress due to having to downsize and move home.

dimbo61

Many Lenders are now looking at IO mortgage and giving customers TIME to sort out while still on IO.
They will not kick your Mum out while she is still covering the mortgage payment.
BUT and this is the big BUT she may end up on the SVR of the lender and letters will arrive about how she is going to repay the loan.
Can she overpay every month? Even £300/500 would help.
She is building up equity in property even if she ends up selling and buying a smaller place or renting an over 55,s apartment