Equity release or Lifetime mortgage

Nickyd63

Hi can anyone give advice on our situation, we’ve got 2 years left on our mortgage but I’ve also got £75k on interest only (long story). Property valued at £450k I’m 59 hubby 61, would like to release money to pay off interest only portion and/or have money in bank to enjoy do not need to leave it to children don’t want to leave it to government! Any tips 

Keep_pedalling

A lifetime mortgage is a form equity release and at your relatively young age is the one that will be available to you.

https://www.ageuk.org.uk/information-advice/money-legal/income-tax/equity-release/

The only way the government would get their hands on your estate would be if you failed to make a will and had no living qualifying relatives to inherit under the intestacy rules. So if you haven’t made one you really should do so ASAP.

MWT

Nickyd63 said:

Hi can anyone give advice on our situation, we’ve got 2 years left on our mortgage but I’ve also got £75k on interest only (long story). Property valued at £450k I’m 59 hubby 61, would like to release money to pay off interest only portion and/or have money in bank to enjoy do not need to leave it to children don’t want to leave it to government! Any tips 

The value of your property together with your age in two years time suggests that you would have no problems releasing more than enough to cover the £75k you would need for the mortgage, as long as your property meets the lenders requirements.

Mostly that is about there being nothing that would hinder an easy sale at some point in the future, so standard construction, no industrial/retail premises nearby, in a good state of repair and free from clutter.

You will need to take advice before you can access the product, and that advice will cost anywhere from a few thousand pounds to free, depending on where you go and the degree of complexity in your case.

elfet

Some advise on equity release on listed properties. Having just done the exercise with a very good adviser, its worth pointing out that if you want to release equity in a listed property be aware that, very few lenders lend on listed properties, even less lend on thatched listed properties, and none lend on listed thatched properties with more than 20% single skin wall construction. Its back to plan B?

MWT

elfet said:

Some advise on equity release on listed properties. Having just done the exercise with a very good adviser, its worth pointing out that if you want to release equity in a listed property be aware that, very few lenders lend on listed properties, even less lend on thatched listed properties, and none lend on listed thatched properties with more than 20% single skin wall construction. Its back to plan B?

It is generally true that anything which may impact on an easy sale will be unappealing to most/all lenders as per my earlier comment.

Listed thatched properties with significant single skin construction would certainly fall into that category sadly