Divorce Rescue – Keeping the family home
According to the latest ONS figures (published in
December 2012) the number of divorces in England
and Wales in 2011 was 117,558 with the highest rate
amongst men and women aged 40 to 44.
Based on marriage, divorce and mortality statistics for 2010, it is
estimated that the percentage of marriages ending in divorce is
For many of these couples the only major asset to be shared is the family home. For
the younger divorcees many could still have a fairly large mortgage on the property.
They will probably still be working so remortgaging to buy one partner out or selling
and borrowing against a new property are standard solutions.
However those in the younger age group may not be able to go down the traditional
mortgage solution route for the following reasons:
- • They may not have sufficient income for the new mortgage
- • They may not be able to raise funds to buy out the other partner
- • They may not be working, especially if still bringing up young children.
In these circumstances, with the help of parents, equity release could provide an
alternative option by releasing funds to help buy out the other partner.
Equity Release schemes may work out to be more expensive than alternatives such as
downsizing to a smaller property and could possibly limit a customer’s options for
moving home at a later date. Interest repayment options are available as interest
rolling up can erode the remaining equity in the property.
Instances of divorce amongst the elderly is also on the increase and again by using
Equity Release it may be possible to buy out the other partner by releasing funds to
buy out their share.
Two examples where Equity Release can help to possibly avoid having to sell the
marital home to fund divorce settlement. Please feel free to contact me if you have
specific cases where the sale of the family home is to hopefully be avoided.
Equity Release includes home reversion plans and lifetime mortgages. To
understand the features and risks, ask for a personalised illustration.
For equity release we can be paid by commission, or a fee of usually £895 or a
combination of both.
Your home may be repossessed if you do not keep up repayments on your
For mortgages, we do not usually charge for administering your mortgage
application as we receive a commission from the lender. Alternatively, you can
opt to pay 0.40% of the value of the loan and receive a refund of commission
from the lender on completion.
IF YOU THINK I CAN HELP RING ME ON 01704 512120 OR 07714 414545
Steve Harrison CeMAP, CeRER
Equity Release Consultant