Help Mother to Release Some Equity from Home

Hi,
Can somebody please advise ....

I am looking for the best way that my Mother could release some equity from the family home.
The house is valued at 500k + and it would be nice for her to get some money to enjoy a retirement as she is now reached 70yrs of age.

I have been warned that some of these company's currently given this type of product charge and take a big chunk for little cash in comparison.

Your Help Would be greatly appreciated.

L.

Re: Help Mother to Release Some Equity from Home !!!

After much thinking (about two years!) my parents have recently taken out a BOI Lifeloan. They favoured this over the other equity release products aimed at older people as it is a straight forward loan with a fixed rate for the first 15 years. Some of the other products, SHIP etc, take a precentage stake in the house and their terms meant my parents got less but the lender would gain a nice stake. There is another product where the lender's stake increases with each year.

The release was approved within about a week but the form filling and letters to and from solicators meant it took about 2 months to get the cheque. They had to amend their will to take note of the bank's interest in the property. Total fees and valuation came to about 1,500 which they included in the equity release. The process seemed to be pretty painless but did take longer than advertised.

If you have any siblings it would be a good idea for you mother to tell them what she intends to do so that there is no in fighting when she passes on.

ASKALOT...Thank you for quick & Helpful reply.
I will inform Mam about the BOI Product and take it from there.

Thanks Again.

L.

Alternatives would be for her to down-size and buy a cheaper/small property or for you (and your siblings) to go guarantor on a standard mortgage with her if your circumstances allow.

Sarah

www.rea.ie