EQUITY RELEASE - please help !

[Deleted User]

Im helping out a 60 yo gentleman trying to sort of his divorce. He is disabled with a stroke and its proving rather tricky. 

One idea is an Equity release of £189,000 which would pay off the existing mortgage and buy his ex out of her share of the assets. 

The house is valued at £375,000
his income from all sources £22,859
He wants to pay the interest so the debt does not get any bigger 

Ive no clue on equity release schemes ( I just remember the scare stories of the old ones ) 

doable ? 

Cscott139

Hi, I think he will struggle with this. In terms of equity release he is still quite young so the maximum he should be able to get would be approx £130000 with interest rates above 6%. 

foxy-stoat

Probably better off selling and buying a smaller property outright.

He needs to speak to an independent financial adviser and broker for his options really.

[Deleted User]

thanks guys !
he has a house he rents out mortgage free - blooming pre fab house though. Its worth about £200k - Im still trying to find out if it has a PRC certificate - they are selling in that road so fingers crossed. He doesnt know / cant remember due to the stroke 
I think either selling that or mortgaging that might be an option ( if the thing is mortgageable ) 

Thrugelmir

Suggest that his ex gets the property. Better than crystallising a gain with tax to pay. 

foxy-stoat

Thrugelmir said:

Suggest that his ex gets the property. Better than crystallising a gain with tax to pay. 

Something an independent financial adviser would advise on....OP do you have Power of Attorney over this chap's finances?

[Deleted User]

we are just waiting on the public protection office to seal the order then I’ll have it. He can still make decisions etc, is just almost blind and its all a bit overwhelming considering the mess it is. We all promised ( me, his sister and mine and the guys children - also my children ) that we will do anything to try and keep him in his own home and we think the stress of him moving will kill him. 

Thrug - yes I was just saying to his sister maybe his ex could move into the rental xx 

[Deleted User]

We dont think the pre fab house has increased in value much, as only bought two years ago just before the series of strokes.
Honestly its a total headache but his ex is being very fair, so Im doing my best to ensure it all works out one way or the other ! 

Thrugelmir

Has your friend sought professional legal advice? 

Whats_your_forte

Transfer the pre-fab to the Ex at Land Registry and then she can sell for whatever she wants?? Then leaves the gentleman with just getting his remaining balance onto a normal mortgage with him able to service the debts

[Deleted User]

Thrug - yeah he has a divorce finances solicitor but they cost a fortune so Im doing all the donkey work and finding out what is possible etc, and we take advice as we go along and he’ll draft up the consent order once we have a way to raise this money 

His ex has agreed to settle very fairly ( cant say too much) but I doubt she will want the pre fab house ( its a dump - god knows why he bought it ) with a tenant in it and its too far from her work in her own company and she just wants to buy somewhere for herself 
we are trying everything to prevent him having to move