Is equity release the right thing to do?

pjjb

I own my house outright but my daughter needs £150,000 to buy a property with her partner.who can raise his £150,000. Is it right for me to take out  the amount in equity release or is there another way. I should say she is 53

sammyjammy

Can she not fund it herself/buy a cheaper house?

lisyloo

pjjb said:

I own my house outright but my daughter needs £150,000 to buy a property with her partner.who can raise his £150,000. Is it right for me to take out  the amount in equity release or is there another way. I should say she is 53

How old are you?
what is your plan should you need long term care? (Local authority provision can be dreadful and not necessarily near your family or even your spouse).
any decent daughter won’t put your long term care in jeopardy.
does she work? Why can’t she get a moretgage?

pramsay13

Who will pay the repayments for your £150,000?

Does the £300,000 buy the other property outright or will there be a mortgage on that as well?

I assume you are older and won't then get a normal mortgage for the amount. 

Keep_pedalling

pjjb said:

I own my house outright but my daughter needs £150,000 to buy a property with her partner.who can raise his £150,000. Is it right for me to take out  the amount in equity release or is there another way. I should say she is 53

If she is your only child, this may be an option. The interest that would roll up on the loan would reduce her eventual inheritance but it sounds like her needs might be more immediate. Of cause if you have other children it will affect them in the long term as well.

How much is your home worth?

youth_leader

Would they consider a different area that might offer more affordable properties?

Her partner could use his £150K for a deposit, and they could get a joint mortgage for the remainder?  They would have to have a Deed of Trust for a fair split of the house sale amount in case they separated in the future.

  

MikeJXE

Is that good idea if she is 53 you must be at least 69 or even over  ?

 Why not she buy a lesser share and then if they split it won't take much to buy  her out.

Veteransaver

Do you have any other children as it would definitely cause issues if one of them is effectively getting their inheritance early, and potentially means the other children won't get any at all.
Is your house worth enough to get £150k, generally you'll only be able to release about 20-30%

peterhjohnson

Veteransaver said:

Do you have any other children as it would definitely cause issues if one of them is effectively getting their inheritance early, and potentially means the other children won't get any at all.
Is your house worth enough to get £150k, generally you'll only be able to release about 20-30%

Some good points although the probability any other children getting zero inheritance is extremely low.

bouicca21

I have a friend for whom equity real ease is ideal. She is cash poor but asset rich, has no dependents and no close relatives.  What happens after her death is of no concern, funding a pleasant life style  has no drawbacks.  OP is in a very different position. 
 

lookstraightahead

Someone else might comment who knows better, but doesn't this fall into deprivation of assets?