I am getting divorced and want to know whether I can use equity release schemes to pay off my ex?
The answer to this will in part depend on how old you are. Specialist lifetime mortgage equity release schemes requiring no monthly repayments are only available if you are at least 55.
Whilst technically the money released under an equity release scheme can be used for any legal purpose, in practice whether it would be sufficient on its own to pay off an ex, will depend on how much your ex wants to relinquish any ownership in the property and how old you are. If they want the customary 50% it would be highly unlikely that you could release enough unless you were about 90 under a lifetime roll up mortgage, or possibly 75-80 under a home reversion plan. However if you agreed that they would only require a much lower amount or you have other assets to help reduce the amount required from an equity release scheme then yes it might be able to allow you to pay them off and gain full title to your property.
To get an immediate idea as to whether a roll up lifetime mortgage scheme could potentially release enough, try our online equity release calculator.
Even if you could raise enough some equity release scheme providers will not issue a offer of money prior to your ex's interest in the property being relinquished in your favour. In most cases this is impossible without the money being released. However, other providers will issue an offer prior to decree absolute and conditional that the money will only be released to your solicitor simultaneously with your ex relinquishing all rights over title to the property.
To explore your options please complete our online enquiry form or call us on FREEPHONE 0800 970 4883