Equity from my half commercial half residential property

janebombane

Hello! Anyone know of a way to raise (a lot of) capital from my property (mortgage-free now) that's half cafe half maisonette to give to my son towards his first buy flat? He would pay the monthly interest. I'm 67, state pension, bit of income from my caff but not much.... Fingers crossed. Many thanks, Jane

[Deleted User]

A mortgage, if you're able to get one given your circumstances.

If your son were to pay the interest, who would repay the capital?

janebombane

Many thanks. Tried loads of places but can't get a mortgage to speak of now. Seems equity release is my only option but places I've tried and advisors I've spoken to won't go near commercial premises! It's worth 450,000 and is in great repair. I need £150,000. . . 

janebombane

Ps. The lump sum would be paid off when I sell or die!

[Deleted User]

That means you're looking at interest only, which is going to be even harder to get.

janebombane

Thanks. I thought that equity release usually worked like that. . . But, yes, you're right, it's going to be very hard. . . 

[Deleted User]

Equity Release is usually interest only, it's also compound interest year on year, could well be a very expensive bill for your son. Maybe he should save longer for his house. Or you sell up and downsize as well as donating to him.

janebombane

Many thanks. Yes, am also thinking this, but am not ready to give up my business yet really, which shares the building with me!