Can an elderly person raise a loan secured on a mortgage-free house?

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Nuis

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Hi all Sorry this is probably in the wrong area. My query is re my uncle who is widowed and as no children. Lives in a house worth approx 250K with no mortgage. He is short on cash to do repairs etc to house or take a holiday. He is 80 yrs old. Is there anyway he could get a lump sum of maybe 15k that would be repaid when the property is sold when he passes. THanks all.
 
No, this product is not available in Ireland at the moment.

It used to be available - Bank of Ireland gave out Life Loans to people over 70. And other institutions did what was know as home loan reversion schemes. These are not available any more, although they could come back.

The best way to solve this is for a relative to do one of the above schemes.

A relative could buy 20% of the property. Today it would be worth €50k, but given that they won't get their money until the uncle dies, they should pay only about €20k to own 20%.

Alternatively, a relative could lend him the money and issue an actual mortgage.

Or a relative could buy the house and rent it back to him.

Brendan
 
When reverse mortgages were available in Ireland, they were generally received very badly. In this country, leaving the family home as an inheritance is largely seen as an obligation. In truth, these schemes offer asset rich, cash poor old age pensions a good opportunity to release equity in their home so they can have a comfortable old age.

The people who give out about the amount received do not understand Net Present Value and how the sum is calculated.


Steven
www.bluewaterfp.ie
 
I see there is ads on some UK tv channel again for this type of loan, wonder will it migrate over here again? I agree they were not ideal but a good way to give older people a better quality of like in the here and now.
 
Nuis said:
Hi all Sorry this is probably in the wrong area. My query is re my uncle who is widowed and as no children. Lives in a house worth approx 250K with no mortgage. He is short on cash to do repairs etc to house or take a holiday. He is 80 yrs old. Is there anyway he could get a lump sum of maybe 15k that would be repaid when the property is sold when he passes. THanks all.
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Their local credit union would be the only avenue to get such a loan.
 
I doubt if the Credit Union would give a loan to someone who does not intend to make any repayments until the house is sold.

And the cost would be extraordinary as Credit Union rates are so high.

Brendan
 
Brendan, I hear what you say but think about it. OAP has a pension, OAP has a CU account. OAP agrees to pay 40€ per week off a loan, then I cannot see why a loan cannot be given. CU used to be the lender of last resort. OAP can use the loan to pay the loan so to speak, someone just needs to work out the maths
 
Local Authorities give grants to carry out renovations to houses specifically for people over 66, the grant is called "Housing Aid for Older People" as far as I know. You/your uncle should contact his local County Council to find out more.
 
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