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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