Transfer of Equity Help Required

Cerumol

I currently own a property with a value of around 1 million in the Uk with an equity release loan of 60K outstanding.

I am trying to do a few things and looking for some help about whether there is any way to do this.

My son and his family already live in the property and would like to take some ownership of it, and in doing so release capital for me. They do not have the cash capital to do this directly.

I also wish to take a residency abroad and as part of this process, I wanted to transfer ownership of the house in the UK to my three children. Is there any way to do this? Does the original equity release loan need to be repaid or came it be transferred to my son and potentially increased. Would all my children need to be involved in any equity release loan. Can my son take on an equity release on the percentage he would own if I transfer ownership.

It feels like a complicated process so any guidance would be appreciated.

MWT

You should take advise on this from a broker but in short, you will almost certainly have to repay the current equity release loan in full, together with any penalties for early repayment before you can consider any transfer of ownership of the property.

You may already have broken the terms of the equity release by allowing your son and his family to occupy the property unless they have already signed waivers of residency and your plans to vacate the property would also be a problem for most equity release products and could even trigger their right to have the property sold to repay the mortgage.

Similarly unless your son and all persons on the deeds are over 55 there is no possibility to use an equity release product to release funds.

After taking advice you should probably consider downsizing to release equity and then transfer ownership in a lower value property to your son and family if that is what you want to do...

Equity release products do not fit well with shared ownership and younger family members.