Is equity release an option ? Any other options?

B

BirdFlower

New Member
Messages
5
Inheritance due to come through soon. Want to buy house worth €487000. Will have €120000 from inheritance and €40000 saved. The remaining 327000 we would not be mortgage approved for full amount ( would get 300000 maybe )
Family member would **gift** is the 327000 and we could buy the house in cash with our name on deeds.
Could we release equity / take out loan / mortgage for 300000 to give back to the family member?

Any other way to do this ?
 
Hi,

Welcome to AAM.

To cover all angles and see what your options are it might be best if you were to give the full details on a Money Makeover thread where you might get the best advice.
 
A few options to explore

Option A

1) Relative buys the house
2) You buy it from the relative when you have your inheritance.

It will cost you an additional €10k in terms of stamp duty and legal fees.

Ask you solicitor is it possible to avoid the stamp duty on this in any way. I doubt that there is, but check it out.

If this is a new house and you are availing of various schemes, then you won't be able to do this.

Option B
Agree a delayed closing date with the seller

Option C
Relative lends you €150k now which you will repay from the inheritance.
Mortgage lender might not like this but might be ok if you have a letter from the Executor or their solicitor to say €150k is coming your way and you expect to receive it on 20th June 2024.

Option D
Wait until you have your inheritance and buy a different house.
 
Brendan Burgess said:
A few options to explore

Option A

1) Relative buys the house
2) You buy it from the relative when you have your inheritance.

It will cost you an additional €10k in terms of stamp duty and legal fees.

Ask you solicitor is it possible to avoid the stamp duty on this in any way. I doubt that there is, but check it out.

If this is a new house and you are availing of various schemes, then you won't be able to do this.

Option B
Agree a delayed closing date with the seller

Option C
Relative lends you €150k now which you will repay from the inheritance.
Mortgage lender might not like this but might be ok if you have a letter from the Executor or their solicitor to say €150k is coming your way and you expect to receive it on 20th June 2024.

Option D
Wait until you have your inheritance and buy a different house.
Click to expand...
Plod
Brendan Burgess said:
A few options to explore

Option A

1) Relative buys the house
2) You buy it from the relative when you have your inheritance.

It will cost you an additional €10k in terms of stamp duty and legal fees.

Ask you solicitor is it possible to avoid the stamp duty on this in any way. I doubt that there is, but check it out.

If this is a new house and you are availing of various schemes, then you won't be able to do this.

Option B
Agree a delayed closing date with the seller

Option C
Relative lends you €150k now which you will repay from the inheritance.
Mortgage lender might not like this but might be ok if you have a letter from the Executor or their solicitor to say €150k is coming your way and you expect to receive it on 20th June 2024.

Option D
Wait until you have your inheritance and buy a different house.
Click to expand...
is equity release not an option then ? If we own the house worth €487000 we couldn’t take €200000 cash from the bank ? It’s hard to get any information about equity release
 
Brendan Burgess said:
Option A

1) Relative buys the house
2) You buy it from the relative when you have your inheritance.

It will cost you an additional €10k in terms of stamp duty and legal fees.
Click to expand...
There is a big risk here that some party gets sick/dies/changes their mind.

A bank might be a bit suspicious if the purchase is from a related party who has just bought it, specifically that it’s not fairly valued.

Finally, even though it’s not, it could look like a part of a money laundering chain and both banks and solicitors are obliged to assure themselves that it’s not.


So I don’t rule out the above scenario, but there is lots that could go wrong.
 
BirdFlower said:
Really ? I’ve contacted a few mortgage brokers who are looking into for me and they haven’t said there isn’t any. One said Avant do something like this
Click to expand...
Okay so there are some equity release products but they tend to be very limited. Unless you've retired and/or the purpose of the loan is for a home renovation there is effectively no such product out there. None of these providers are Avant.
 
You must log in or register to reply here.
Back
Top