urban

iTrader: (1)

OK,

Long story, but a friend was left a house after final parents death.

He's been asking me how can he release capital from the house without selling the place.
There is no mortgage outstanding, property was fully paid off.

Can he remortgage a bit or something via the original mortgage provider?

I think the potential downside is that he doesn't work anymore because of health problems.
His doctor requested him to stop working a good few years ago because of heart problems (think he's got a hole in it from birth)

Thanks,

Shaun

davegtt

The fact that hes not working wont go in his favour but he should be able to take a mortgage against the property value upto a certain percentage etc... All lender dependant etc....

2000TLondon

He owns the house now, so he has X amount of equity.

To avoid "selling" part of the house to a bank, as he has no income and therefore limited ability to make monthly payments on the mortgage, he could consider renting the place out to either raise income or cover mortgage payments.

I would advise against entering into a deal where a "bank" or money lender takes a certain stake of the house in exchange for cash.

urban

iTrader: (1)

Thanks for the replies.