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Release equity on house

  • 22-05-2019 2:31pm
    #1
    madnessnmayhem
    Registered Users Posts: 198 ✭✭


    Firstly apologies if this is not in the right, section my mother is looking to release equity on a house so she can live for the next 5 or 10 years, mortgage is fully paid as she owns the house she's 63, Where is the best place to go to release equity so you can enjoy the few years that she's got left


Comments

  • #2
    Glass fused light
    Registered Users Posts: 1,576 ✭✭✭Glass fused light


    Sorry to be crass but why is her life expectancy 5 to 10 years?


  • #3
    madnessnmayhem
    Registered Users Posts: 198 ✭✭madnessnmayhem


    Figure of speech could be longer howvu making this an issue?????


  • #4
    Fol20
    Registered Users, Registered Users 2 Posts: 3,625 ✭✭✭Fol20


    Im not sure if these types of loans are still available. Is terms of her affordability, how does she expect to repay the loan?


  • #5
    madnessnmayhem
    Registered Users Posts: 198 ✭✭madnessnmayhem


    This is why I'm asking as far as I'm aware she doesn't need to repay when she's passed we sell the house pay what's owed on bank this is why I'm asking is there a place that's does it or seeking advice hence asking on here!!!!!


  • #6
    Glass fused light
    Registered Users Posts: 1,576 ✭✭✭Glass fused light


    madnessnmayhem wrote: »
    Figure of speech could be longer howvu making this an issue?????
    100,000/10 or 100,000/30 makes a difference in spending.

    First thing to factor in is that as she gets older and physically less able her housing needs may change. Is her current home adapted or adaptable to rollators or wheelchairs eg bathroom and a downstairs bedroom. How about access to shops, doctors and public transport. Geographly, how easy is it for family members to drop in and check on her. How much gardening and maintance is needed to keep the home running. The best equity release may be to sell the current house and downsize.


    She could currently get a lodger in and earn 14k tax free.
    Depending in the layout of the house a small spend and a reorganisation could split the house into 2 independent living spaces.


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  • #7
    Limestone1
    Registered Users, Registered Users 2 Posts: 856 ✭✭✭Limestone1


    Bank of Ireland used to have a product like this and there was also a Celtic Tiger company called Seniors Money who are still operating but not lending at the moment.


  • #8
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,438 Mod ✭✭✭✭Jim2007


    madnessnmayhem wrote: »
    Figure of speech could be longer howvu making this an issue?????

    Because it makes one hell of a difference to the calculation. Are you asking this for yourself or her???????????


  • #9
    madnessnmayhem
    Registered Users Posts: 198 ✭✭madnessnmayhem


    I'm trying to help her to find somewhere or someone to contact so he/she can give her advice, my question state anyone know who to contact?


  • #10
    delta_bravo
    Registered Users, Registered Users 2 Posts: 4,567 ✭✭✭delta_bravo


    Wasn't this the kind of thing that Older people got absolutely screwed by? Sometimes the loan gained so much interest it was greater than the value of the home by the time they died. I'm not sure they offer them anymore as there was so much outrage at it.


  • #11
    Dirkziggler
    Banned (with Prison Access) Posts: 948 ✭✭✭Dirkziggler


    madnessnmayhem wrote: »
    I'm trying to help her to find somewhere or someone to contact so he/she can give her advice, my question state anyone know who to contact?

    Your best speaking to an advocate to discuss all matters first before making any decisions.

    The lender wil need to be satisfied before allowing money out.


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  • #12
    BrokenArrows
    Registered Users, Registered Users 2 Posts: 7,498 ✭✭✭BrokenArrows


    She might be able to sell the property with rights to rent the property until her death. Some investor might be happy with this arrangement for a discount on the purchase price of the house.

    However might be easier just to sell the property outright and move somewhere cheaper, using the left over money to live on.

    There is actually a term for this "home reversion". In some cases you would sell the property with the right to live there rent free until death. The amount you receive would be based on your life expectancy. The purchaser takes a risk on whether you would live longer than expected.


  • #13
    stefanovich
    Registered Users, Registered Users 2 Posts: 5,490 ✭✭✭stefanovich


    madnessnmayhem wrote: »
    Firstly apologies if this is not in the right, section my mother is looking to release equity on a house so she can live for the next 5 or 10 years, mortgage is fully paid as she owns the house she's 63, Where is the best place to go to release equity so you can enjoy the few years that she's got left

    Terrible idea. Scummy companies do this in the UK to legally rip off old people. I'd consider other options.


  • #14
    Voltex
    Registered Users Posts: 1,580 ✭✭✭Voltex


    Equity release to fund day to day living should be the last option. I recently released equity from a mortgage free property through ICS, but that property is rented and I still had to prove affordability and repayment capacity from my day to day job.


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