Parent in a pickle
Discussion
No, not me. My dear father. And it's of his own making. Again. For reasons to be explained, he has turned to number one son for help.
Background:
Dad decides to rekindle romance with ex-wife number 2 after a short break of 40 years, leaving my mother (who showed more sense than to marry dad) living in my old apartment. Family house sold and proceeds split 50:50.
Dad decides to buy house in London with new ex wife on a 75:25 split (he puts in 25%). no mortgage.
After 2 months, new ex wife becomes ex new ex wife and they have now broken up. She going back to her ex-husband. Dad assures me split is amicable, and the ex and her no longer ex husband want to do an equity release to buy dad out and the resell the new house.
Now, apart from my dad being a complete cock (I know where I get it from now), what can he do to ensure that he gets his capital back (about 90k) as I'm concerned he will get stitched up. I've told him to speak to a lawyer and an IFA.
Assuming he does get his money back, he will be 67 and without a home, or the capital to buy one (about 120k apparently). He also has a private pension which is quite decent apparently. Where should I advise him to go/what to do?
My parents still own an investment property which provides them with rental income so I'm reluctant to advise them to sell it.
Background:
Dad decides to rekindle romance with ex-wife number 2 after a short break of 40 years, leaving my mother (who showed more sense than to marry dad) living in my old apartment. Family house sold and proceeds split 50:50.
Dad decides to buy house in London with new ex wife on a 75:25 split (he puts in 25%). no mortgage.
After 2 months, new ex wife becomes ex new ex wife and they have now broken up. She going back to her ex-husband. Dad assures me split is amicable, and the ex and her no longer ex husband want to do an equity release to buy dad out and the resell the new house.
Now, apart from my dad being a complete cock (I know where I get it from now), what can he do to ensure that he gets his capital back (about 90k) as I'm concerned he will get stitched up. I've told him to speak to a lawyer and an IFA.
Assuming he does get his money back, he will be 67 and without a home, or the capital to buy one (about 120k apparently). He also has a private pension which is quite decent apparently. Where should I advise him to go/what to do?
My parents still own an investment property which provides them with rental income so I'm reluctant to advise them to sell it.
Eric Mc said:
See a solicitor.
Get a formal, legally binding agreement drawn up regarding the distribution of the proceeds of the equity release.
Thanks Eric. Those were my thoughts too. Are there any issues with paying off an equity release in under a year? My dad seems to think that there is, but then he thought lots of things recently that turned out to be wrong...Get a formal, legally binding agreement drawn up regarding the distribution of the proceeds of the equity release.
Bing o said:
Are there any issues with paying off an equity release in under a year? My dad seems to think that there is, but then he thought lots of things recently that turned out to be wrong...
If they are genuinely doing equity release then they need to speak to an IFA that does it. If they are simply remortgaging that property to raise funds to buy your dad out then if they choose the right mortgage they'll be fine.
He does of course need legal advice on the ownership front.
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