Equity release to purchase property

thingswerentthisbadinmyday
thingswerentthisbadinmyday Posts: 12 Forumite
Second Anniversary Name Dropper First Post
edited 22 April at 3:47PM in Mortgages & endowments
Afternoon all
Not urgent for now and probably won’t happen soon - if at all - but at some point down the line I am anticipating a family member needing some general guidance on how best to purchase a new property. I think I can say with some confidence that renting won’t be an acceptable option.
In simple terms, can someone apply for and use the proceeds of an equity release facility to purchase a property? This could be the purchase of a ‘new’ property in sole name or possibly even buying out the 50% share (tenants in common) of the co-owner (i.e. the co-owner’s estate).
If a loan were possible, it would be for no more than 50% of the property value - probably a lot less.
I realise that I could approach one of many equity release companies but once I do, I am sort of ‘caught up’ in their admin/database, whereas all I am trying to do at the moment is to obtain some general information to ascertain if this is even possible.

Comments

  • Mark_d
    Mark_d Posts: 2,139 Forumite
    1,000 Posts First Anniversary Name Dropper
    I don't see why this wouldn't be possible.  When you release equity, I don't believe there are stipulations as to what you can and can't do with the money.
  • silvercar
    silvercar Posts: 49,108 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    I’ll move this to the mortgage board as equity release is a type of mortgage.
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  • MWT
    MWT Posts: 9,861 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    In simple terms, can someone apply for and use the proceeds of an equity release facility to purchase a property? This could be the purchase of a ‘new’ property in sole name or possibly even buying out the 50% share (tenants in common) of the co-owner (i.e. the co-owner’s estate).
    Short answer is yes, you can use an equity release product to fund the purchase of a new home, or to remove a mortgage or other interest in an existing home.
    All subject to the usual constraints of an equity release product of course (no other mortgage, suitable property, age related limits on the amount you can borrow etc.).


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