Equity release / buying share in parents property

Monkeybutt

All,

first post so please forgive me if I make any major errors.

I have discovered that my parents have a mortgage that finishes in 18 mths ( total amount £57K ), their endowment will only achieve £30K. Should I be looking to arrange equity release through one of the providers or is it possible for me to 'buy' a share in their property ?

recent valuations are between 195 and 215K

All advice greatly received.

Thanks in advance

Jason

Pinkleylandii

There is a downfall of £27,000 which needs to be paid to make the property free from payment. If you go for equity release the company that provides it to your parents has a share in the house. If it was me and the mortgage is so low if you were working I would take a loan out for a period of time and pay the downfall of the mortgage. I think you would need advice as to whether to go for a unsecured loan or a mortgage deed all providing your parents are willing for you to do this and have a share in the property. I would suggest if you do this and you have other siblings your parents draw draw up some sort of contract so yout investment is covered in the case anything happens to your parents and there assets have to go to probate. I think personally I would go for an unsecured loan if I could get a excellent deal as you are then free to buy another property in your own name at a later date.

Rember the property is in your parent's name, anything you pay does not necessarily entitle you to a slice of the property. I am sure everything would be fine with your parents but as to siblings I have heard of horror stories where money is concerned when things happen to parents, my advice protect your investment. Elaine