My elderly mother is thinking it's time to up sticks from her rambling old house in the middle of nowhere and move into a sheltered housing flat near my sister. A suitable and desirable flat is likely to be available in a few months but she doesn't want to move until the autumn at the earliest, so she needs to raise some money to buy the new place when it comes up, before she sells her house (which is worth comfortably more than the flat).
My sister has been talking to a financial advisor, AgeUK and a company
called Key Retirement Solutions and seems to be being steered towards
Equity Release schemes. However these seem geared to a different purpose
and I'm wondering what the options are. Some types of ERS seem to be
basically mortgages of various sorts anyway and I'd have thought that
raising a vanilla mortgage on the house and using it to buy the flat
would do just as well.
Of course the other factor is how any of this would affect her benefits
entitlement and eventually inheritance tax liability. I haven't even
started to try to factor in these considerations.
I'd welcome any thoughts, pointers etc ...
- posted 6 years ago