Equity release

Jay53

No, as I said in my original post, I don't earn enough to be accepted by letting agents as a potential tenant so equity release could mean they get their inheritance now & I still have somewhere to live.

Herzlos

Jay53 wrote: »

No, as I said in my original post, I don't earn enough to be accepted by letting agents as a potential tenant so equity release could mean they get their inheritance now & I still have somewhere to live.

I mean can you sell that flat for £160k, buy another for ~£95k, and give them the £60k you'd have left after fees? It'd probably still give you a nicer setup than renting.

How low is your income if you're not passing rental checks?

The real risk with equity release is that whilst you'll maybe get £60k out of it now, it'll cost you the full value of the property - you'll essentially be giving away £100k to a finance company.

Jay53

My flat only has one bedroom, if I downsized to a studio it wouldn't release enough equity & I don't fancy living in a bedsit at my age. My age would also be an issue for re-mortgaging.

Herzlos

Can you gift each child 25% of the flat, and have them use that £40k equity as leverage for their own mortgages? You might need legal and broker advice though.

Jay53

Good advice Herzlos, gifting them a percentage of the flat would mean I can stay put; my next step is to get financial & legal advice, thanks to all who replied

TrickyDicky101

Herzlos wrote: »

Can you gift each child 25% of the flat, and have them use that £40k equity as leverage for their own mortgages? You might need legal and broker advice though.

That wouldn't help - the kids wouldn't have any money and the OP wouldn't then own 100% of his flat either. How do you expect the kids to 'leverage the £40k equity' for their own mortgages?

ViolaLass

Could you go and live with one of your children? Then you could combine financial forces.

Otherwise I don't see how this is a goer.

Keep_pedalling

Herzlos wrote: »

Can you gift each child 25% of the flat, and have them use that £40k equity as leverage for their own mortgages? You might need legal and broker advice though.

That is bonkers, if either of them ran into financial difficulty or die before the OP he could end up losing his home. I would not normally recommend ER, but it is a better option than this idea.

If the OP is old enough to obtain ER then there is little risk to him. His children will certainly lose much of their inheritance but in the long term may still be better off having been out of the rental market for a good few years.

Silvertabby

That is bonkers, if either of them ran into financial difficulty or die..

.. or get divorced.

MEM62

OP I salute your good intention and understand your motivation. However, from the brief details of your circumstances as you have explained them, any form of equity release is absolute madness.

In truth, you are just not in a position to assist your sons.