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Equity release to purchase property

thingswerentthisbadinmyday
Posts: 12 Forumite

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.
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.
0
Comments
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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.1
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I’ll move this to the mortgage board as equity release is a type of mortgage.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1
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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.).1
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