Equity release

Daisy_MAE

Hi.
I own outright a 200k house and would like to purchase a 300k house. Is there any way I can use the equity in my present house to finance the purchase and then somehow transfer it to the next house so that I again use the equity in that to give me a 100k lifetime mortgage and do not pay out anything except perhaps just interest on the equity loan.? I am 68 and cash poor. All ideas welcome.
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fwor

I think you will only get a reliable answer from one of the Equity Release providers, so it may be easiest just to ask one of them. However, my gut feel is that you won't find one that will let you take half the value of the house.

Here's what Which? says in their online guide to the subject:

"Equity release doesn’t come cheap. A lifetime mortgage can cost more than three times what you borrow after 20 years."

If you look at that, there isn't three times £100k of value in your house, and there won't be in the £300k house that you want (because 100k of that will be their money anyway!). So I doubt that you will find anyone to lend you that much.

Daisy_MAE

Many thanks. I'm a novice to all this. Do you think it might be possible to do this if it was 50k equity loan then and bought another house for 250K instead?

BrassicWoman

generally if you are cash poor, downsizing is a better plan than upsizing. Unless you are very old and very infirm.

Ben8282

I am wondering at the true purpose of this. if you are cash poor it makes very little sense for you to want to move into a bigger and more expensive house. What do you plan to do with the original house? You won't be able to sell it without repaying the original charge on it.
If you really want to move to a bigger and more expensive house, the only way I can see is to get a normal mortgage for 100k.Interest only perhaps although this could create a situation of your being aged 93 and suddenly having to sell your home or find £100k to repay the capital.

[Deleted User]

Down sizing appears to be the only real solution

Mgman1965

If your retired (you say your 68) why are you upsizing ?

Also, if your cash poor how do you intend to pay all the bigger bills that a bigger property incures without being even more cash poorer.

Sounds like a bit of a silly move to me.