Remortgage/Equity Release

L

Louise77

Registered User
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Hi folks newbie here!
My parents are retired and living on meagre pensions, however they own a house worth 500K in Donegal and a Shop worth 500K in the North (rent of 800 Euro a month coming in) - both properties have their mortgages paid off!
We would like them to have a comfortable retirement so what would be the best way to release equity on the properties - they don't want to sell either of them - so would the best plan be to sign the properties over to their offspriing, remortgage and give them the money. I've heard the equity release schemes are very bad value??
Thanks for you help in advance folks!!
L
 
Hello,

Equity release schemes are very expensive, normally about 6% - 7% interest, I recently did a calculation for a client and it was as follows

€80,000 borrowed after 10 years there was €156,000 owing to the bank.

The best option is to sign over a property to a family member, and let them take a remortage out on it, this is done regularly in place of the standard equity release scheme
 
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