Could equity release be the solution for a divorcing couple who wish to keep the family home as a retreat for their adult children? Mark Gregory explains more...
The Question
My husband and I have decided to separate and have recently started divorce proceedings. Things are reasonably amicable but, it will probably come as no surprise for you to hear, the only stumbling block we have encountered is the family home.
The obvious solution is to sell it and divide the proceeds. However, for various reasons – mainly involving our grown-up children – this is not entirely practical.
So, could we release some money from the home using equity release to fund the purchase of a flat for my husband so that we can continue to retain ownership? The home is worth £680,000 and I think a flat nearby would be in the region of £250,000.
Mark’s Answer
Firstly, I am sorry to learn that you and your husband have started divorce proceedings and I can understand that this must be a difficult time for both of you. I can confirm that equity release can be a viable solution for you both and you could continue to live in the family home.
Unfortunately, you have not included your age, so to clarify you must be at least 55 years of age to qualify for a flexible Lifetime mortgage. To give you a broad overview of the process, I can confirm the amount you can borrow and raise for your circumstances is based on your specific age and the older you are the more capital you can access.
At this stage of your research the best solution would be to understand your eligibility and if you can raise the capital you need, and then with the help of one of our expert advisers you can secure a plan to suit your individual requirements.
You have a couple of options to help you, including completing your own research on our website, by using our unique smartER research tool you simply enter your personal details, and smartER will be able to provide you with everything you need including he amount of capital you can borrow for your age, fixed interest rates and other features and benefits.
Alternatively, our friendly whole of market advisers will quickly and efficiently explain how much capital you may be able to raise without obligation, and you can contact them on 0800 802 1051, or by using our livechat facility on the website.
Of course, both you and your husband would each have to take your own independent legal advice and your husband would have to agree to be removed from the title deeds of the family home in return for a capital lump sum to purchase his new home. The amount of capital he would receive would be agreed by both of you following legal negotiations.
Following equity release advice, if a flexible Lifetime mortgage was the right solution for you, then you would retain full legal ownership of your home in your name, and the Lifetime mortgage would be secured on your home. The mortgage would have a fixed interest rate and you and your family can decide to service the loan with payments, or let the loan increase with compounding interest.
However, rest assured as your friendly expert, equity release adviser will provide you with all the facts, figures and risks associated with your plan before you proceed.
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
