New House / Equity Release in PPR?

[thebop]

Parents need to relocate and purchase new house. Their existing PPR is mortgage free and they don't intend to sell it.

Would it be best for them and make financial sense to release equity in the existing PPR to pay for new house.

Am also thinking of applying with them for the equity release so i will contribute to paying for the equity release. Is their implications involved with this. Would i be better just handing them cash monthly.

 

[Dave Vanian]

Would it be best for them and make financial sense to release equity in the existing PPR to pay for new house.

Probably not, as the "old" house would no longer be their PPR and they might pay extra on the mortgage because of this. Might possibly an argument if the LTV would be much lower by securing against the existing PPR, but even this is unlikely.

Am also thinking of applying with them for the equity release so i will contribute to paying for the equity release. Is their implications involved with this. Would i be better just handing them cash monthly.

You'd have to clarify why you're giving your parents money every month. Is it rent? Gift? Other?