Equity release or remortgage

sebastianj

Hello all,
I have a scenario to deal with. Husband and wife both not in very good health. All their money tied up in property with about £30000 mortgage left. Husband is 60, wife 58. Husband has a private pension of 7k p.a and not much else apart from some Pension credit and council tax benefit. The property is worth 400K and they have 3 children but no Will.

They want to enjoy life, travel etc while they can, can any one suggest the best way they can accomplish their dreams.
rgd
sebastian

margaretclare

They wouldn't be able to release much equity at their age - we had to be 68 before we could release 25%.

If they could, it would be a good idea for both of them to buy an 'impaired life annuity' which would give them a better deal than a normal annuity, plus a regular income to spend on what they choose. I'm no expert - just thinking of the possibilities.

They should both have a will. Everyone should, whatever their age or circumstances.

HTH

Margaret

missile

With little income it may be difficult to get a re-mortgage

EdInvestor

sebastianj wrote: »

Hello all,
I have a scenario to deal with. Husband and wife both not in very good health. All their money tied up in property with about £30000 mortgage left. Husband is 60, wife 58. Husband has a private pension of 7k p.a and not much else apart from some Pension credit and council tax benefit. The property is worth 400K and they have 3 children but no Will.

They want to enjoy life, travel etc while they can, can any one suggest the best way they can accomplish their dreams.
rgd
sebastian

Dwonsize to a cheaper property, thus releasing money which can be used to pay off mortgage and invested to produce a return ( expect 5%), thus increasing their income.

Check out their state pension situation at https://www.thepensionservice.gov.uk

missile

£400K sounds like a big house, but maybe not if in central London? Unless one buys a significantly cheaper, the costs of selling / buying, refurbishment and the inevitable unforeseen costs can often swallow up most of the capital released by downsizing. Sell up and rent a series of "holiday" homes around the world could be a viable option for this couple? However I suspect they don't want to move?