Raising some cash from a flat.

[rlw]

A colleague has a, presumably, mortgage free flat in a trendy part of London. He wants to raise some cash against the flat - say 25% of the value - but without incurring repayments. He is 65 +. Any thoughts?

Personally, I don't see how it can be done, but what do I know.

[TooLateForAName]

Equity release schemes - but they have high costs.

Does he have dependants that he would want to pass his assets on to?

[AnimalMother]

If he's got the income he could get a mortgage to 85, that's if he wants to repay it.

[WindyCommon]

Yes - he can raise the cash by selling it.

If he needs it to live in then he has correctly the identified the flaw in the "my property is my pension" idea...

[DSLiverpool]

WindyCommon said:

Yes - he can raise the cash by selling it.

If he needs it to live in then he has correctly the identified the flaw in the "my property is my pension" idea...

Wrong - sell it and rent somewhere in affordability street, he is 65 how big a pad does he need?

[williaa68]

There’s a pretty good guide on the Which? website to equity release. I think it’s got to be a last resort but that’s an unqualified view. Better off selling and trading down IMHO.

[WindyCommon]

DSLiverpool said:

WindyCommon said:

Yes - he can raise the cash by selling it.

If he needs it to live in then he has correctly the identified the flaw in the "my property is my pension" idea...

Wrong - sell it and rent somewhere in affordability street, he is 65 how big a pad does he need?

Errrr... that’s still selling it. So “wrong” how exactly?

My point is simple. A property cannot provide both a home and a post employment income.

[DSLiverpool]

WindyCommon said:

Errrr... that’s still selling it. So “wrong” how exactly?

My point is simple. A property cannot provide both a home and a post employment income.

I meant it’s not a flaw merely a condition, however equity release would cover both if owned for considerable time.

[rlw]

I think that the point of raising some cash was to pay off debts rather than be a pension. Like me at 65, he is still working and will do so for as long as necessary. Equity release really is the only solution, or selling the flat, as far as I can see.

[Sarnie]

rlw said:

I think that the point of raising some cash was to pay off debts rather than be a pension. Like me at 65, he is still working and will do so for as long as necessary. Equity release really is the only solution, or selling the flat, as far as I can see.

......or he could just get a mortgage..........