Is there a 'good' way to release home equity

DairyQueen

Not relevant for the OP but RIO mortgages are also an option for 'upsizing' in retirement if you have sufficient retirement income.

Mr DQ and I seriously considered taking an RIO mortgage rather than use capital to fund our recently-purchased property. As things turned-out, we spent significantly less on the purchase than we had anticipated so parked the idea. We would definitely consider this option going forward.

Sandtree

Nebulous2 said:

Has he considered downsizing? Dependent on location, does he need a £400k house? 

So he sells his house, estate agent takes their cut. He buys a property 25% cheaper and has to pay stamp duty on it so ends up in a smaller place, with 25% minus agency minus stamp plus then having to do work to get it to their taste.

Alternatively they can get an equity release mortgage for 25% at no cost during their lifetime. The property will go to charity in this case so the charge doesn't impact his kids etc directly.

They should get professional advice but ERM but it can be a reasonable option for some.

shinytop

Although the facts/options have already been given, there is a thread here that may be useful.

https://forums.moneysavingexpert.com/discussion/5860953/equity-release-guide-discussion#latest

TVAS

This adamant he does not want to leave the house. Does he have good health? Is it a bungalow?  Even if he does have good health and the property has stairs what if he has a fall and can no longer access the second floor. 
The people who downsize always do it early before any problems arise mental or physical which means they have time to find the right property rather than it being urgent. 
It also has the advantage of having cash in the bank for himself and he can make gifts to relatives DURING HIS LIFETIME.
ER has moved on, it is not a scam and if you want to stay in your home this is the way to go. You will be present so READ ALL THE DOCUMENTS (so many don't), compare lender fees and interest rates as as well adviser fees.  The advantage of this one is not moving with the costs that ensure.

Pollycat

Sandtree said:

Nebulous2 said:

Has he considered downsizing? Dependent on location, does he need a £400k house? 

So he sells his house, estate agent takes their cut. He buys a property 25% cheaper and has to pay stamp duty on it so ends up in a smaller place, with 25% minus agency minus stamp plus then having to do work to get it to their taste.

Alternatively they can get an equity release mortgage for 25% at no cost during their lifetime. The property will go to charity in this case so the charge doesn't impact his kids etc directly.

They should get professional advice but ERM but it can be a reasonable option for some.

The OP has said:

skyblues87 said:

He absolutely doesn't need to stay in a house the size he has. There's some fantastic over 55s flats near him that would be perfect with the option to add care packages should that be a requirement in the future. He could buy one of those and have over £200K left over but is adamant he doesn't want to move. 

I would be trying to find out why moving is not an option he will consider.

If he is going to make a major financial and personal decision about his future he really should consider all options with an open mind rather than just saying 'I'm not moving'.

skyblues87

TVAS said:

This adamant he does not want to leave the house. Does he have good health? Is it a bungalow?  Even if he does have good health and the property has stairs what if he has a fall and can no longer access the second floor. 
The people who downsize always do it early before any problems arise mental or physical which means they have time to find the right property rather than it being urgent. 

Absolutely adamant. Seems to run in the family. Completely agree about doing it early. If and when I'm in a position to do that I'll be making the move as early as possible and living the most comfortable retirement I can.

My parents had the same problem with both my sets of grandparents which ended up with them staying in houses that weren't suitable with deteriorating health. My parents, having spent years saying they won't do the same to me are now doing exactly the same, late 70s and will not move from a house that's already too big for them. If I suggest they move into somewhere for the over 55s I get told 'I'm not old' 

Browntoa

Closing thread and referring you to the existing thread

https://forums.moneysavingexpert.com/discussion/5860953/equity-release-guide-discussion#latest