Equity release?

Cannyshopper

My wife, my brother and I bought a bungalow in 2007 using an interest only mortgage which needs paying back in 2026. All three of us contributed towards the mortgage but it was in the names of my wife and I.

My wife and I lived with my brother for a few weeks before buying another property in 2008 without a mortgage for my wife and I to live in, leaving my brother to live on his own in the first property. The three of us are over 70 and still live in these two properties.

If we decide to take out an equity release mortgage on either property to pay off the interest only mortgage, there would be enough equity to pay off the £70,000 owing on this mortgage. We would prefer to to use the bungalow where my brother now lives which is timber-framed with one acre of unused land attached. However the property needs some internal and external work carried out.

Would it be possible to acquire an equity release or similar mortgage without carrying out the work beforehand? Any suggestions would be most appreciated.

MWT

Based on what you have posted so far, the bungalow is not a candidate for a Lifetime Mortgage (Equity Release) as the two of you that own it do not reside there, and the person who does reside there is not on the deeds..

The timber-frame construction, attached land and state of repair also make it a less than idea candidate.

You can take some free advice from somewhere like StepChange and see if they can help, but I suspect you are going to have to consider using your other property.

The other alternative is a normal repayment mortgage, but given your ages and the consequential high monthly payments require for a repayment mortgage, that may not be viable.

There is a fledgling market in BTL equity release, but this isn't a let property and with a close family member in it that would add to the complexity and you would still be left with all the other negative aspects of the property to deal with.