I am single and own my own home. I have my mother living with me. Can my mother be included in any Equity Release agreement even though she does not own the house.
The simple answer to this question is no, she cannot be party to an equity release plan if she does not own the property. However you do have a couple of options open to you. I would suggest adding her name to the title deeds of the property as part of the legal process when arranging a plan and including her as a joint applicant. This would ensure that, should she survive you, she would be able to remain in the property for the duration of her life. This is the securest way of arranging a plan to protect the both of you.
Alternatively if you do not wish to add your mother to the title deeds of the property, an equity release plan can still be taken out in your name only, however your mother would need to sign a deed of consent. A deed of consent is a legal document that confirms your mother would give up any rights to reside in the house after your death or if you move into long term care. Although it is unlikely, if she were to survive you, she would have to repay the loan herself (possibly from an equity release plan in her own name) or move out of the property in order that the equity release plan can be repaid from the sale.
I hope this helps, if you have any more queries please let me know and I shall be happy to help.
Many thanks,
Mark Blanchfield
—
Mark Blanchfield is a fully-qualified equity release specialist advisor for Age Partnership. Tel: 08080 555 222 Web: www.agepartnership.com
One company i contacted said that I was not viable as I intend to sell my property in the future as it is far too big,but have no intention of selling it in the present economic climate .Seems a bit harsh. I am concerned about the interest rates ,If they are compound they could stack up very quickly
Selling your property in the future would not exclude you from being viable for an equity release plan, however this would need to be discussed further in view of the possible early redemption penalties that some of the products have, this all depends on what equity release plan you are personally recommended.
With regards to interest rates, they have been very stable with regards to equity release and currently represent excellent long-term value with the lowest current rate at 5.95% fixed for life. There is also the option to protect up to 50% of the equity in your property with some products if you are concerned with the effect of compound interest on your estate.
I would recommend you contact a specialist equity release advisor to talk through your options in more depth.
I hope this helps,
Kind regards,
Mark Blanchfield
—
Mark Blanchfield is a fully-qualified equity release specialist advisor for Age Partnership. Tel: 08080 555 222 Web: www.agepartnership.com
Dear Croila,
The simple answer to this question is no, she cannot be party to an equity release plan if she does not own the property. However you do have a couple of options open to you. I would suggest adding her name to the title deeds of the property as part of the legal process when arranging a plan and including her as a joint applicant. This would ensure that, should she survive you, she would be able to remain in the property for the duration of her life. This is the securest way of arranging a plan to protect the both of you.
Alternatively if you do not wish to add your mother to the title deeds of the property, an equity release plan can still be taken out in your name only, however your mother would need to sign a deed of consent. A deed of consent is a legal document that confirms your mother would give up any rights to reside in the house after your death or if you move into long term care. Although it is unlikely, if she were to survive you, she would have to repay the loan herself (possibly from an equity release plan in her own name) or move out of the property in order that the equity release plan can be repaid from the sale.
I hope this helps, if you have any more queries please let me know and I shall be happy to help.
Many thanks,
Mark Blanchfield
Mark Blanchfield is a fully-qualified equity release specialist advisor for Age Partnership. Tel: 08080 555 222 Web: www.agepartnership.com
One company i contacted said that I was not viable as I intend to sell my property in the future as it is far too big,but have no intention of selling it in the present economic climate .Seems a bit harsh. I am concerned about the interest rates ,If they are compound they could stack up very quickly
Hi MaryB,
Selling your property in the future would not exclude you from being viable for an equity release plan, however this would need to be discussed further in view of the possible early redemption penalties that some of the products have, this all depends on what equity release plan you are personally recommended.
With regards to interest rates, they have been very stable with regards to equity release and currently represent excellent long-term value with the lowest current rate at 5.95% fixed for life. There is also the option to protect up to 50% of the equity in your property with some products if you are concerned with the effect of compound interest on your estate.
I would recommend you contact a specialist equity release advisor to talk through your options in more depth.
I hope this helps,
Kind regards,
Mark Blanchfield
Mark Blanchfield is a fully-qualified equity release specialist advisor for Age Partnership. Tel: 08080 555 222 Web: www.agepartnership.com