remortgage/release equity options

S

speedfreak

Registered User
Messages
17
hi,
my parents have two properties one being the family home. There is a small mortgage left on the family home (about1/10 of market value) and none on the second property. They want to release about 50K in equity. The current lender is asking for proof of income etc. My dad is self employed but ill at the moment. Is there any option to release this equity?
thanks
 
not enough information provided to make a call.

does your father have an accountant?
if so, what are the accounts like?
do they get rental income on the second property?
is your father long term ill?
how long has he not been earning?
what are your parents ages?

All lenders will ask for proof of income.

go to a broker that deals with all the lenders and discuss options
 
If they chose to release equity on the second property (you haven't specified if it's being rented or not, I'd presume it is) they may be able to secure the equity release simply on the rental income (see here for example).

By giving more detials the experts on AAM should be able to give you far more details.
 
thanks for the replys so far.
Unfortunately my dads business is a bit of a mess ie good money coming in but seems to all go on suppliers and wages etc.
He does have an accountant but is v.bad at getting relevant documents to him, accounts are only just closed for 2002 (i think).
There is no rental income on the second property as some of my mothers family live there. Both properties have a combined value of €2-2.5m
Not a terminal illness but he could be out for 6-8 months (already ill for last 3)
They are 63.

I have had a look at some equity release products but they seem to be expensive but maybe thats the only option? They need about €50K to cover short term debt and other expenses
Thanks
 
Look at the situation
Business not making money..
Accounting messy
Parents are 63 and one is sick
€50k debt
Second property costing them money as no income from it.

why not considering selling one property instead of trying to release some equity?
 
bacchus said:
why not considering selling one property instead of trying to release some equity?
Click to expand...

I'd love if they were in a position to do that but with certain members of her family living there that just isnt an option at the moment.
 
They should really focus on getting their accounts uptodate.

If there's some money going through his bank accounts then he could possibly self certify with start mortgages.

you could possibly help him get a loan if your income is high enough

otherwise talk to a broker
 
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