Equity Release

LittleKJ

My parents are aged 85 and 90 and still living in their own home.  Dad has heart problems and as expected for a 90 year old has intermittent other acute health problems.  Mum is physically fairly fit but has recently been diagnosed with Alzheimer’s.  They live in a lovely house and would really like to end their days there.  As life becomes more difficult for them we would like to employ a live in carer(s) which we expect to cost about £65,000 per annum.  My parents have no cash resources to fund this but their house (with no debt) has been valued at £800,000.  My sisters and I think a drawdown equity release scheme would be ideal for this.  It would be fairly short term, (given the age of the parents), and if using a drawdown we wouldn’t be paying unnecessary interest charges, but I am not sure if such a product for this purpose exists.  If not, can anyone recommend any other solutions?

[Deleted User]

Drawdown equity release is an option - as is standard equity release. 

Rates tend to be slightly higher on drawdown and there are limits to the value and number of drawdowns themselves, so you'll need to look at the numbers carefully.

Spendless

I would also consider at least one of the parents living to a ripe old age regardless of health issues and take their finances into account should this happen.  Both my Grandmothers are still alive at 96 and 98. The eldest has been in a care home with dementia for the last 7 years. The younger still lives in their own home.

LittleKJ

Spendless said:

I would also consider at least one of the parents living to a ripe old age regardless of health issues and take their finances into account should this happen.  Both my Grandmothers are still alive at 96 and 98. The eldest has been in a care home with dementia for the last 7 years. The younger still lives in their own home.

True, but hope to keep them in their house for as long as possible, and should be able to finance a good few years from the equity.