Equity Release

Mimosas2903

I've just turned 55, live in Spain where I rent my house, and I own a property in the UK which is mortgage free and has tenants.

I'm not able to work due to long term ill health and receive a small occupational pension and I was claiming UK Incapacity benefits until the switch to ESA when I lost my entitlement.

I have already downsized my UK property to clear the mortgage and I am reluctant to sell up completely in case I ever need to move back but I desperately need to release some cash to see me through a few more years here whilst my teenage son completes his education.

Can anyone advise me if there are any equity release schemes that would be willing to lend?

I can forsee 3 problems, ex-pat, only own one property and the property is modest, probably only worth £75k. I would be looking to possibly release £35k.

Thanks in advance

MortgageMamma

Being an ex pat shouldn't present a problem as you already hold accounts in the UK, only owning one property isn't a problem either and the amount you wish to borrow does not seem too unrealistic.

The real issues you face are, you are only 55 and assuming you have a normal life expectancy the equity release may take all the value of the property as the loan is over such a long term. What happens when the £35k is spent what will you and son live on if you don't have any benefit money? - do you have any other income?

Some types of equity release allow you to make repayments to reduce the balance, but it must be affordable or it defeats the object.

Have you explored options other than equity release?

MM

Mimosas2903

Thanks for your reply. My only income at present is the rental and my ill health pension - which together are leaving me just a little short to live comfortably. At the moment my parents are helping me out financially but that is not a situation I can rely on indefinitely. As I see it my only other option is to sell up totally but then I will lose the rental income and the lump sum will reduce quite quickly.

There is still a possibility that I could reclaim benefits and I will be discussing this with my lawyer this week - if there is a strong possibility that I could claim again then I will leave things as they are - this enquiry was really just to test the water to see if there were options available. If there options other than equity release I would be interested to find out?

Looking forward, things may change when my son comes up to university age as he wants to return to the UK to study, and without the stress of a teenager at home and the money worries I have had over the last few years I could possibly return to at least some sort of part time work.

Thanks again.