Totally trapped 1 February at 10:57AM in Mortgages & endowments 4 replies 897 views

quickbrew8

My wife & I own a new-build apartment (no mortgage). Our only beneficiary has just died, leaving us sitting on a large slice of equity. Apparently, because of the service charge, nobody is willing to consider equity release schemes. Any ideas as the where we go from here, please?

Edi81

quickbrew8 said:

My wife & I own a new-build apartment (no mortgage). Our only beneficiary has just died, leaving us sitting on a large slice of equity. Apparently, because of the service charge, nobody is willing to consider equity release schemes. Any ideas as the where we go from here, please?

Sell the property, get the cash and down size and enjoy the cash. 

Sell, buy a freehold and do equity release on that. 

quickbrew8

Thank you for your reply.
 We have downsized, and that is why we find ourselves in our current situation. As we are both elderly we moved here for the security and peace of mind that this type of development offers.

ACG

Have you tried a second broker? No harm in getting another opinion. 

MWT

quickbrew8 said:

As we are both elderly we moved here for the security and peace of mind that this type of development offers.

When you say '...this type of development...' is the apartment in a purpose built retirement community with restrictions on the resale ?

If so, then I do not think you will be able to obtain equity release easily, but there are I believe a very small number who would consider it, but there will be conditions...

Things like a minimum property value of £200,000, no new builds, maximum LTV around 66% and resale fees less than 3% of the value.