Equity release, or other options for pensioners?
Discussion
Relatives of mine (lets call then A and B) were divorced many years ago. B left and has a new life, family, home etc, and A still lives in their original family home. Both are retired (70ish), the house is paid off and they are joint tenants.
The joint tenancy means that when either A or B dies the other gets the whole property.
B has contacted A saying they would like to look at ways of releasing capital from their half, but has specifically said that they are not suggesting B down size.
A is reasonably open to a compromise as it could mean securing their half as something to leave their Grandchildren.
Are there any equity release schemes that will effectively ring fence 50% of the property? If they did agree an equity release what sort of charges are involved? Personally I see them as a bad idea!
Are there other ways of raising money on the property that they should be considering?
They are aiming to meet up in the next few weeks, and I will be present to ensure there is no foul play.
The joint tenancy means that when either A or B dies the other gets the whole property.
B has contacted A saying they would like to look at ways of releasing capital from their half, but has specifically said that they are not suggesting B down size.
A is reasonably open to a compromise as it could mean securing their half as something to leave their Grandchildren.
Are there any equity release schemes that will effectively ring fence 50% of the property? If they did agree an equity release what sort of charges are involved? Personally I see them as a bad idea!
Are there other ways of raising money on the property that they should be considering?
They are aiming to meet up in the next few weeks, and I will be present to ensure there is no foul play.
LeoSayer said:
Surely the best compromise is for the house to be sold or for A to buy B's share.
Does B get an rental income from B?
Both are in their 70's so financing a buy out is not an option. A does not want to move, and B does not expect them to. 50% of the house value would only buy a very cheap flat in a dodgy part of town so that's a non starterDoes B get an rental income from B?
There is no rental money being paid.
Edited by 98elise on Thursday 7th April 13:05
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