Equity release can take some of the stress out of divorce
Rose and James are getting divorced late in life. In this scenario, they use the release of equity in their jointly-owned home to help make splitting their assets easier.*
Both aged 73, Rose and James Heath are going through the stressful process of dividing their assets for the financial settlement of their divorce.
Rose wants to stay in the marital home, but James has agreed to move out and buy a new property. They have agreed to divide the value of their house evenly and have £100,000 in joint savings.
With their house valued at £375,000, Rose needs to access £140,000 of equity in the property via a lifetime mortgage, paying the remainder of the money owed to James from her savings.
By choosing a lifetime mortgage, Rose can remain in her home while retaining ownership, guaranteeing no negative equity, and have the option of monthly repayments. James can now access his finances and buy himself a property.
Things to consider
Before applying for equity release, weighing alternative options and looking at the possible effects on your finances is important. These include:
- Downsizing and other forms of finance
- Compound interest roll-up, if chosen
- Early repayment charges
- Long-term care and state benefits considerations
- A lifetime mortgage may impact the inheritance you leave
Get in touch
Speak to our Wealth Specialist, Toni Chalmers-Smith or Senior Associate Solicitor Catherine Banks at Tees today.
*Examples of customer scenarios only. Every case will be different.
This material is intended for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice. Some information quoted was obtained from external sources we consider to be reliable.
Tees is a trading name of Tees Financial Limited, which is authorised and regulated by the Financial Conduct Authority. Its registered number is 211314.
Tees Financial Limited is registered in England and Wales, registered number 4342506.
Chat to the Author, Catherine Banks
Senior Associate, Residential Property, Bishop's Stortford office
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Caroline & Alan
Bishop's Stortford
'A big thank you Catherine for your help in securing our recent equity release. Your clear and precise speaking made the process very easy'
Brenda Green
Bishop's Stortford
'I wanted to say a big thank you to you Catherine and your team at Bishop's Stortford for your most impressive and responsive service in helping things go smoothly. I've sold a few houses over the years but never had the benefit of such a good conveyancing service and without your help I have a feeling that things would have progressed very slowly. I'm looking to buy my next house very soon and will certainly be knocking on your door again'
Roger Anthony
Bishop's Stortford
Staff dealt with were professional and well informed and assisted us extremely well during time taken (5 months) during our discussions. Would use firm again should needs occur.
David Marsh
Bishop's Stortford
I was always kept informed of the progress of the transaction by the friendly and efficient Conveyancing Team at Tees. There was always someone available to answer my questions. All in all, a service well worth the very reasonable fee. Thank you very much Tees for a stress-free process.