Equity release under 55s!?

leahsfx

My partner and I, both 35 bought our council property 3 years ago with max discount. We don’t want to sell within 5 years to avoid paying back percentage.
We have to get a bigger house due to family size increase; and soon!
Could we release equity on our current property to go towards another home and rent out or current ex council property? Or is this option only for over 55s?
We don’t have the funds for another 10% deposit on a new place and cannot stay where we are for another 2 years or equally loose out on the 40% we’d owe back to the council by selling up soon now.

Advise greatly appreciated.

James_d_2

I don’t think you can
There will be a lot of restrictions on what you can do in your title deed
Like must be your main home
Must not sell in the first 3 years etc
Remortgaging you can do without penalty but you wouldn’t be allowed to release money from it to buy another place and rent that one out

James_d_2

And after 3 years you wouldn’t have to pay it all back it goes down year by year

diggingdude

Has to be a wind up

James_d_2

That’s what I thought tbh a wind up
For one now would they get another mortgage on the second property
As the new mortgage company will see a mortgage and a equity release on the first so not a chance in hell of getting a new mortgage on the second

Any how you carnt get a equity release when it’s morgaged already surely lol

Tiglet2

Equity release companies won't normally consider anyone under 55 and it has to be the youngest person applying.

tarzanette

How big is the house and how many children do you have?

AdrianC

leahsfx wrote: »

My partner and I, both 35 bought our council property 3 years ago with max discount. We don’t want to sell within 5 years to avoid paying back percentage.
We have to get a bigger house due to family size increase; and soon!
Could we release equity on our current property to go towards another home and rent out or current ex council property? Or is this option only for over 55s?
We don’t have the funds for another 10% deposit on a new place and cannot stay where we are for another 2 years or equally loose out on the 40% we’d owe back to the council by selling up soon now.

Advise greatly appreciated.

OK, let's say you do manage to buy another place.

What are you going to do with this one? Let it sit empty for two years? You can't rent it.

"Equity Release" is a way for the elderly to take out a mortgage on a house they own outright, and spend the money before they die. They don't pay anything (or much) back - and repayment with interest is taken from their estate at their death. You don't currently have much equity in your place, I'm presuming - maybe I'm wrong. Give us some numbers...

MEM62

leahsfx wrote: »

We don’t have the funds for another 10% deposit on a new place and cannot stay where we are for another 2 years or equally loose out on the 40% we’d owe back to the council by selling up soon now.

You will have to deal with one of those options as they are the only ones open tom you.

AnotherJoe

Buy some bunk beds and live with it for the two years. In the meantime save up.

TBagpuss

You can't do equity release as you are not old enough (and it would probably not help you any way)

You are poprobably not permitted to rent out the property, but chekc the rerms of your hlp to buy. If youare allowed to rent it out, you could consider moving into rented accommodation yourseves and letting your home, but makesure you get your lnders approaval and that you comply with all of the requirements for landlords. And be aware that you are taking a risk, financially.

Normally, the amount your have to repay if you sellwithin 5 years decreases over time, so you may have to repay less than you think, if you chose to sell w.
Read your paperwork, and work out the figures, so you can decide whather you can afford to move.

If you can't, then your choices are to stay put for now, and save up so that you can afford to move in another year or two, or decide to sell now and move to rented accommodation and then aim to save so you can buy futher down the line.

Mean tim, your children may have to share a room, or any new baby sleep in your bedroom, for now.