Equity release.

Hi

hope someone can advise. My father died in 1977 intestate, therefore two thirds of estate automatically went to his widow my mother who is now 73 and her only income is the contributory pension of 200 weekly.

The remaining one third is divided beween four siblings.

My mother wants to release equity in order to provide finance to one of the sons with the agreement of the other sons.

The property is mortage free and is valued at 400,000 euro.

We wish our Mother to remain in the house for the remainder of her life.

The family are considering this as a solution to sorting out an extremely difficult situation.

Help

I dont think any of the Equity release companies wil go near it as they only become part owners of this property .
your mother has automatic rights to live in this property in any case even if as appears one of the siblings are looking for the
cash now .
you might be better off trying to buy him out now rather than looking for equity on this home through the release scheme

It looks difficult alright !

What is the "extremely difficult situation"? That one of the four sons wants to cash in his share? Would the option above of the three others buying the fourth brother out of his c. €130K share (i.e. c. €44K each)?

Hi Guys,

many thanks for you input, other three buying out the brother this would seem to be the best option at present.

Camry said:

He has a €44k share (25% of 33%).

So the remaining 3 could stump up €11k each. Not unreasonable.

Click to expand...

Sorry - can't even do basic maths today!

trying to figure out how 3 payments of 11k met his 44k share.....reckoned it was a family discount.

realised that his share is actually 33.3k !

Hi Camry thank you for reply, no problem knew what you were at !

Basically story is house valued at 400,000

Mother legally has 2/3 share = 266,666

Four sons have 133,333 divided between them (in equity)

which is 133,333divided by four = 33,333 each.

However does the son who requires the cash settlement look for the 33,333 or should he be entitled to ask for 1/4 of the 400,000 from the other three brothers in agreement to relinguish all further inheritance rights. to the property.

After this brother receives the cash, the mother could leave her 2/3 share to the son who received the cash settlement. It starts to get tricky here, Is it possible to get this sorted.

The mother can leave her 2/3's share to whomever she likes including the son in trouble. But maybe the 3 brothers would not be willing to pay the 11K if they knew this was going to happen.

Incidentally he is not 'entitled' to ask for anything but he 'may' ask and be refused.