The Question
Can I take out equity release on my Dad’s behalf using Power of Attorney? My Dad is 88 and has recently been released from hospital after having a stroke. He needs major adaptations to the home but has no savings – so equity release is the only option.
But, because he is unable to communicate and has severe memory loss, I doubt he’ll be able to make an appointment with an equity release adviser, let alone take out a policy.
If I activate the Power of Attorney which we set up a few years ago, will I be able to do this on his behalf? If so, what options for Lifetime mortgages would you suggest.
Mark’s Answer
Thank you for your questions and I am very sorry to read that your Dad has had a stroke, and he has severe memory loss. As your Dad needs capital to make adaptions to his home and he has no savings, equity release is a common way for our customers to raise capital for this purpose.
Assuming your Dad’s property is worth at least £70,000 and he does not have a mortgage, or he is prepared to replace his mortgage, equity release is a viable option that you can consider on his behalf.
For example, a flexible Lifetime mortgage could give you an initial lump sum and access to cash reserve facility to drawdown further capital when required in the future.
I can confirm that if you have a Lasting Power of Attorney (Property and Financial Affairs) and it is registered with the Office of the Public Guardian, you can act as his attorney and replace him during the advice and application process.
Our expert whole of market advisers will assess your Dad’s current situation, to help them design and create a bespoke recommendation based on his needs and your requirement for capital in the future.
However, you have not confirmed if your Dad needs to raise capital to pay for his care at home, so this needs to be considered before you raise capital for the adaptions. Furthermore, before you raise capital from the equity in your Dads’ home, it would be beneficial for you to consider disabled facility grants provided by the government.
For example, grants can be made available to allow you to widen doors, install ramps, improve access to rooms and gardens or install a downstairs bedroom or adapt heating and lighting.
In England you may be able to claim up to £30,000, Wales £36,000, and Northern Island £25,000. Scotland do not have disabled facilities grants, though the Scottish government can provide grants for support for equipment and adaptions.
As noted, I would recommend that you consider these grants and once you have established your Dad’s potential entitlement, you could then talk to one of our friendly, expert advisers who could then top up your funding requirements, or explain what capital can be made immediately, or in the future from equity release.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
