Equity release

[roypaulknewmyfather]

My mother in law took equity release when it was first available. She took £20k and had a conservatory built, driveway done and a new central heating system. She was thrilled with it. Sadly a few years later she developed Alzheimer’s and had to go into residential care. The terms of the release stated the balance had to be settled if she went into care, 12 months max from the time she went in. Luckily my missus had power of attorney so was able to get the house on the market. The old lady died before it was completed. The amount paid back to Aviva was £70k. That was 4 years ago. Not being judgmental, just giving what happened in our case. If you are ok with that, it’s your choice.

 

[Kippaxpete]

I have seriously considered it, due to my circumstances, I look after/live with my elderly blind mother & the thoughts of moving/downsizing fill me with dread, I cant get at my private pension for another 4 years (state pension 5 years) & I cant really go out to work full time due to looking after mum (done over 40 years self employed builder) so at the moment I am trying to buy & sell to survive,
Not really sure what to do because all our money is tied up in the house, banks are a waste of time & I dont really want to go down the equity release route but it is very tempting.

See my response to Gaudion above.
Hope it helps and good luck.

 

[J.G.Blue.]

You should be able to get at a private pension at 55 if really needed.

Sadly there is a huge penalty clause if I take it out before I am 64.

 

[denislawsbackheel]

They are not as bad as they used to be as lots of options now, including just borrowing some money and paying interest on the amount you borrow so the debt doesn’t ramp up. I’m no expert on these but for some people it could be a good idea. If you are single for example with no kids then why leave your property to your long lost nephew who hasn’t seen you for 15 years. Suits some people but won’t be for everyone.

That’s a lifetime mortgage, not equity release.
My mother in law had an interest only lifetime mortgage, capital to be paid off in full on death so the debt never increased. She easily managed the much lower monthly payments and the equity released on sale gave her daughters £100K each after the capital was repaid.
Does your mum get attendance allowance to which she will be entitled and do you get carers allowance to which you will be entitled?

 

[Brooklands Blue]

That’s a lifetime mortgage, not equity release.
My mother in law had an interest only mortgage, capital to be paid off in full on death. She easily managed the much lower monthly payments and the equity released on sale gave her daughters £100K each after the capital was repaid.

Unfortunately lifetime mortgages are like hens teeth now as they were my preferred advice choice when advising clients over the equity release option.

 

[mancityvstoke]

Does it mean you can't sell your house after? (say you need to move area) Or do you have to pay off the debt first?

Seems like only the mortgage people make a lot of money.

 

[KS55]

A key issue is the interest rate and its variability. You need to ensure that the debt doesnt become unmanageable.

 

[denislawsbackheel]

Does it mean you can't sell your house after? (say you need to move area) Or do you have to pay off the debt first?

Seems like only the mortgage people make a lot of money.

See post 31

 

[Manchester33]

When you remortgage, you can release equity tax-free (at the same interest rate as the rest of your mortgage).

I pay a mortgage advisor £350 to deal with the whole process, she always gets me a brilliant rate, and the funds are transferred to my account seamlessly.

 

[LWashington]

OP be very careful. If you take out equity release you will no longer own your home.
This will stop you bricking the windows torching it and even smashing the back doors in.


Just sayin'

It also just sounds like a posh term for a cumshot; i.e, the highlight of Sebastian's week was when he released his equity over Genevieve's face and tits.