New York City is a city for the young and fabulous. Right? Sure, but those aren't the only people who are living in New York. When you think about the typical person who lives in a Manhattan co-op apartment, you probably think of a beautiful and successful thirtysomething single person or perhaps a young urban couple. But the truth is that a co-op in Manhattan is expensive and the people who live in them have often taken years to gain the kind of financial success and security necessary to live there.
In some cases, they have taken many years to get to the point of being able to afford a New York City co-op. And once they've achieved that success, they maintain it for a few years. But then they find that retirement age is creeping up on them. They love the city but there is no way that they are going to be able to afford to continue living in their co-op on their retirement income. What does a New York City co-op owner do in this case?
Many are considering the option of taking out a reverse mortgage loan. As described recently by Grand Street News, co-op owners can access the home equity of their co-op apartment in New York just as home owners would in any other city in the nation. The amount of money they can access (via lump sum, monthly payments or a line of credit) may even be greater than it is for their counterparts in the rest of the country because of the high value of Manhattan co-op real estate.
It should be noted that co-op owners have one more hassle to deal with than others applying for a reverse mortgage loan. The reverse home mortgage for the co-op must be approved by the co-op board. However, since these people have been dealing with the board for years, they're probably used to that minor hassle. And it may be well worth the cost of not having to give up a prime Manhattan location just because you've decided you're done with work on Wall Street.
