Fake Equity release ?

Brum2312

Hi all
This is probably the wrong section but I cant see a more appropriate one.

Do you know if it is possible / likely to get an equity release approved for a 25 year old couple with a 90% mortgage between Christmas and new years?
I'm almost certain it isn't possible. They hardly have any equity to release and surely an equity release company wants more than a few % equity to protect themselves in event the value drops.


The back story is this:
My brother and his wife recently remortgaged to renovate their house. They ran out of money and I suspect asked our parents for money (I suspect 15k). They are claiming that my parents advised them to get an equity release, and they did. This has supposedly all taken place since the 20th December.


My theory is that this all sounds ridiculous and our parents have lent them the money but collectively want to keep the whole thing secret.

What are your thoughts?

cooltt

It's possible to get any amount of ER very much depends on the company but in a couple of weeks......no chance!

Also a couple so young would be stupid to give away a stake in their home this early on.

HampshireH

So what if your parent's do not wish to discuss their finances with you?

Your brother may have borrowed the money and may have a payment plan in place with your parents.

Why do they need to share this with you? I don't mean to sound rude but you haven't really explained why this would be any of your business.

You have answered your own question. If they have minimal equity & a 90% mortgage then they won't have arranged 15k out of it. That said it would depend on the value of the house.

Brum2312

HampshireH wrote: »

So what if your parent's do not wish to discuss their finances with you?

Your brother may have borrowed the money and may have a payment plan in place with your parents.

Why do they need to share this with you? I don't mean to sound rude but you haven't really explained why this would be any of your business.

You have answered your own question. If they have minimal equity & a 90% mortgage then they won't have arranged 15k out of it. That said it would depend on the value of the house.

Thanks for your help. I guess I just wanted to verify my suspicions. Their property is valued at about 260k and they told me in September they had remortgaged to 90%. So assuming that is true they certainly wont squeeze another 15k out of it.


I guess some families are complicated, however in our families situation... In a nut shell, my parents are retired poor working class types who certainly haven't been financially sensible over the course of their lifetime. They would describe themselves as gullible and certainly haven't made the most of what they've had in their lifetime. I love them dearly of course.


They rely financially on myself as well as my older sister and her partner.

If it turns out they have given essentially every penny they have left to our other sibling who is choosing to make some luxury non essential renovations to their property and realistically wont be paying them back there is no other words for it Shhhhit will hit the fan! :mad:

Happy new year and happy families eh!?!?

HampshireH

Ah..... now that's a whole different ball game. I'd also want to know if I was financing someone & had these suspicions.

Perhaps the question should be....if they have 15k to finance your brother why are you financing them?

AnotherJoe

Zero chance of a 25year old couple getting equity release. I think the minimum age is usually 55.
Almost zero chance of getting ER with 10% equity.
Zero chance of getting it by now starting 20th Dec.

Slithery

Brum2312 wrote: »

If it turns out they have given essentially every penny they have left to our other sibling who is choosing to make some luxury non essential renovations to their property and realistically wont be paying them back there is no other words for it Shhhhit will hit the fan! :mad:

You still haven't told us why this is any of your business?

Cakeguts

It isn't a very good idea for parents to rely on their children for financial reasons if the parents are not good with money. If something happens to the you and your wife can't continue giving them money there will be a problem for them. It now turns out that they can't say no to your other sibling. It is time to make your parents financially independent so that they are relying on themselves.

Brum2312

HampshireH wrote: »

Ah..... now that's a whole different ball game. I'd also want to know if I was financing someone & had these suspicions.

Perhaps the question should be....if they have 15k to finance your brother why are you financing them?

Well that's the point! My sister and I split the costs evenly however we are certainly paying 800 per month between us. As well as that bought them a small 2nd hand vauxhaul corsa a couple of years ago.

When I last saw their bank statement they had about 22k to their name. No pension, no other savings. Really not a great position to be in at retirement age.



It isn't going to happen, however for them to become self reliant they would need to either do their own equity release. Or downsize and sell the house my mother was born in, inherited from her parents.


Perhaps I have this at the wrong angle, but I don't see my parents as being in the wrong here. Its our youngest brother and his wife living beyond their means, pressuring our gullible parents into parting with what little they have left in this world.


I have little hope of reversing this decision and it is rather awkward to intervene. My parents are competent, healthy adults who are capable of giving whatever money they have how they see fit.



Thanks for all your help
Why on earth can't families just be "normal" :rotfl::mad:

HampshireH

If they can afford to do that I fail to understand why you would continue to support them financially

Perhaps you need to sit down with your parents and have an honest comversation.

This isnt about them lending your brother money. Thats their choice.

Its about you/your sister paying for them to do so and that is your choice.

Your brother has potentiality chanced his luck and come up trumps.

You say your parents are capebale. Then they are also capeable to have a comversation, be honest and deal with the consequences.

You could just sit down and do a review of current circumstances with them. Ask them whetger paying £800 a month is really necessary and that you need to see some evidence thst this is the case. They don't show they don't get.

(They have no obligation to show and you are under no obligatiom to give)

[Deleted User]

To be honest if your parents have given your brother all this money whilst you and your sister pay their living expenses I'd be furious.
£800 a month to sub them is no small amount and the subdifuge of the lying shows they aren't that gullible they can't be relied on to keep the lie.

I'd speak to your sister ,demand the truth and if they've given presumably your money to your brother I'd not be paying them another penny.

My brother shafted me with money years ago and it's the most painful hurtful thing because naively you always hope your own family can be trusted. 30 years later I realise how wrong this is.