Equity release to buy primary residence

Tazthedog

I am returning from France to live in the UK. I have £150,000 capital and would like to buy a property in the UK.
Can anyone tell me if I can use an equity release mortgage to release approx £50,000 to provide top up to purchase a property valued at £200,00?

Caz3121

which country is the property that you want to release equity from in?

Browntoa

You do realise that equity release is an incredibly expensive source of funds ?

Linton

Tazthedog wrote: »

I am returning from France to live in the UK. I have £150,000 capital and would like to buy a property in the UK.
Can anyone tell me if I can use an equity release mortgage to release approx £50,000 to provide top up to purchase a property valued at £200,00?

I do not know about full ER roll-up mortgages but you can get interest only lifetime mortgages for a house purchase. The capital is repaid after you die or have to sell the house. These have a far more reasonable interest rate than roll-up ER. You would need to be 55+ to get one. How old are you?


You could then switch to ER later in life.

Tazthedog

I want to buy a property in the UK but it seems that I will need at least £200k to buy in my areas of choice. I only have £150k capital and at 70 years of age have limited avenues to explore in financial terms.
My primary concern is that my wife and or myself have a home for life. I am not so concerned about leaving any inheritance for my children as they have been well provided for.

AnotherJoe

Is the property on which you wish to release equity in France?

Tazthedog

To be clear. Forget about France. I have £150k and want to buy at £200k. If I already owned a house in the UK valued at £200k I could probably release £50k equity - what I'm asking is can I, in effect, short circuit/reverse the process by using an ER product to buy at £200k by leaving £150k of my capital in the property?

Linton

I dont think you will find many people on this forum, other than some mortgage brokers, who have actual experience of roll-up ER. Mine is limited to interest-only. You would be best advised to go through a specialist mortgage broker anyway. I suggest you contact one with the appopriate experience/qualifications and discuss your options.


L&G have, fairly recently I believe, entered the ER market. You could phone them.

missile

Tazthedog wrote: »

To be clear. Forget about France. I have £150k and want to buy at £200k. If I already owned a house in the UK valued at £200k I could probably release £50k equity - what I'm asking is can I, in effect, short circuit/reverse the process by using an ER product to buy at £200k by leaving £150k of my capital in the property?

I don't think anyone would offer you equity release on a property before you own it.

You MIGHT be able to raise a loan using your property in France as collateral.

AnotherJoe

I suspect ER is the wrong term here. You'd either look for an IO mortgage or a mortgage that rolled up the interest. Find a good broker.

[Deleted User]

To answer your question, yes you can use equity release on a purchase transaction. It doesn't have to be on a property you already own.

I don't do equity release but I had a meeting with the guy who I refer business to and I asked him this exact question.


This isn't the company I refer to but this website talks about an equity release purchase transaction. https://www.equityreleaseenquiry.co.uk/equity-release-purchase.php