My mother needs some advice on equity release My elderly mother has been convinced (from the TV advertisements) that she should release the equity in her house to pay for some home improvements.
The equity is obviously substantial - she has no mortgage. She has come to me for advice but apart from being generally suspicious of equity release I don't really know what to say.
The advertisements are obviously designed to be persuasive, but before anyone considers any type of equity release they should seek independent legal and financial advice.
It's a big step no matter what way you look at it and to avoid family squabbles it's best that other close family members are involved. It works for some people; for others going down that route to get a few quid to change the windows is a bit like using a sledgehammer to crack a nut.
So before you even get to the stage of paying for professional advice, there is a great deal of good free advice available, notably from www.citizensinformation.ie and from the Financial Regulator, lo call 1890 777777 and ask for their brochure on equity release, or look at www.financialregulator.ie.
Why does solicitor insist we get engineer's report?
We are in the middle of what has been a very long and delayed buying process (mislaid deeds, owners abroad for a while). It's a small artisan-type house with an extension at the back which gives it a bathroom and larger kitchen.
We were told that no planning permission was received which, given the small size of the extension (less than 40sq m/430sq ft we think) and the fact that it was built around 10 years ago, appears to be fine.
Before our solicitor will sign off on the sale he is asking us to get an engineer's report. It looks fine, and we got a quote of close to €400 for an engineer's report. Who should pay this? We're happy to go through with the sale without a report, the house is ready to walk in to.
Your solicitor is doing what you are paying him for - looking after your best interests. If the planning element of it is OK - though you appear to have no written proof - then that's one thing, but what you really need to know is if the extension conforms to building regulations and is structurally sound.
You don't want to discover in six months time that there is no proper drainage in the bathroom (as one reader in a similar situation to you discovered), or when a massive crack appears and the extension starts to come away from the house (as another reader reported to this column).
Did you not get the house surveyed? A survey on an old house is an absolute must - and you pay for that. But this extension is different. The vendors really should supply your solicitor with a certificate of compliance. They should pay for it as part of the process of supplying the information that goes with the title deeds. At the very least you want a certificate from an engineer or architect to say that it is exempt from planning.
Send your queries to Property Questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. Unfortunately, it is not possible to respond to all questions. The above is a representative sample of queries received. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
