Posted on 4 April 2011 by Julie Coady

We are selling our house and need to raise £35,000 but don't want a mortgage. We will have approx £110,000 to put on a bungalow but need the extra to buy the one we want.  Is there any way we can elect to pay the £35,000 out of our estate when we die?


There are special schemes available called Equity Release.  These 'Lifetime' mortgages differ from a normal mortgage because the interest charged is not paid monthly but added to the loan and only repaid on the sale of the property or you move into permanent care.

You need to be a homeowner, aged between 55 - 95, the property must be freehold or leasehold with at least 75 years remaining and be of standard construction.

Because of their specialist nature you need to take independent financial and legal advice before entering into them and also consult any potential beneficiaries of your estate so that they know what you are considering.

I believe you would benefit from speaking to one of our independent mortgage advisers. Please call on 0344 346 3672 and tell the consultant the date and title of your question. They will be able to look at your situation and advise you accordingly.


Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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