The Question
My husband and I are going through a divorce but still living in our family home until more permanent arrangements can be made. We still have one of our children living at home, so we are reluctant to sell up.
One option we have considered is to retain the house for my son and I to live in and for my husband to buy another property. Could we release money from our current home to enable him to buy a smaller property for himself?
Our current home is valued at £550,000 and he would need around £200k for a flat. My husband is 62 and I am 61.
Mark’s Answer
Firstly, I am sorry to read that you and your husband have decided to separate, and I expect this is a difficult time for you both as you adapt to the changes with your own personal circumstances.
Here at Equity Release Supermarket, we have helped many customers achieve a solution on separation by using the equity in the family home. Although you have only provided me with brief details about your circumstances, as you are both over 55, and your property is worth £550,000, Lifetime mortgages and Retirement Interest only mortgages may be a solution for you both to separate amicably and allow your child to keep living in the family home.
At this time, I would strongly recommend that you discuss your plans and options with one of our friendly, fully qualified equity release, whole-of-market specialists, without obligation to fully understand your options and choices, based on your individual circumstances.
The reason I have recommended that you take advice and discuss your options is because there are many questions in relation to your circumstances, including if your current home is mortgage free, where your husband plans to purchase the property, the type of property he intends to purchase and what options, features and benefits you require with your capital raising.
One consideration is that once you have both taken independent legal advice and agreed on the terms of the separation, if the property is transferred into your name, the equity release plan would be in your name and the capital released would be given to your husband to purchase his new home.
He could then use this capital as a deposit, and it may be possible for him to obtain further borrowing on his new property, possibly via equity release to increase his purchase power. Our independent experts are happy to talk to you together or separately, face-to-face, over the telephone, or via video conferencing which ever suits your circumstances.
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
