Would Equity Release be an option?

[Regina George]

My Dad is 87 & living in the family home, he is in poor shape & requires 24/7 carers, which don't come cheap. His outgoings exceed his income to the tune of approx €1,000 per month by the time the carers are paid the house heated & general living expenses. His savings were meeting this shortfall for the past number of years, but his resources are almost exhausted now.
The house is probably worth €600,000.
If he were to release say €75,000 equity from the house, he could live comfortably for the next 75 months.
What are the pitfalls of such a plan?
Does anyone have any experience /advice they could share?
Many thanks
RG

 

[Zebedee]

I’m not sure who is doing equity release these days. Seniors Money used to as did BOI.

The Competition & Consumer Protection Commission have a good section on it ccpc.ie. They also reference state support schemes (eg nursing home cover funded by the state in exchange for equity) which you might be interested.

Given his age and value of the house I suspect €75k should be doable (if there is any one in the market).

Make sure you have a lawyer involved and make sure all the family are aware of it and support it (avoid inheritance disputes).

 

[Regina George]

Thank you Zebedee.