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House, what to do with it?
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jonsbird
Posts: 17 Forumite
Right,were a couple of old retired codgers who own outright our 3 bed end of terrace property.
Say it myself but it is in exellant decorative order......and marketable for approx £165.00 in this area.
Do we go through the hassle of a move to a flat or something similar to make a few bbob on the property, or do we take out one of these life annuities for life so the money is repayed when we both hop the twig!
We do have one child who has decided to disown us as he has already had the cash we had to spare.......so why don't we find a way to use the value of the house and enjoy it ourselves??
Anyone know anyone who has used this sort of service?
JB
Say it myself but it is in exellant decorative order......and marketable for approx £165.00 in this area.
Do we go through the hassle of a move to a flat or something similar to make a few bbob on the property, or do we take out one of these life annuities for life so the money is repayed when we both hop the twig!
We do have one child who has decided to disown us as he has already had the cash we had to spare.......so why don't we find a way to use the value of the house and enjoy it ourselves??
Anyone know anyone who has used this sort of service?
JB
Waddle you do eh?
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Comments
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I read about this in either yesterday or today's Times.
There are ways to do it and ways not to do it! You need a specialist financial advisor who has passed a particular exam relating to this (paper 7??).
There is an organisation called SHIP that regulates this area. Anyone who signs up to their standard guarantees you won't be in negative equity.
If no-one finds it first I will search out the article tomorrow.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I'm not sure if you are referring to equity release schemes. If so i would steer clear of any 'lease for life' scheme. Appear very dodgy to me - with this kind of scheme the ownership of the title to your property is transferred to the finance company and they grant you a lease to live in the property for life. Sounds fine - but what happens to your property if the company go under??!!
Normal 'lifetime mortgages' are much safter - you retain the ownership of the property and they merely register a charge (mortgage) against the property. Stick with the reputable big boys - Northern Rock or Standard Life.
Hope this helps - hope this is the area you mean. Otherwise - sorry to rabbit on!!!!0 -
You will regret equity release schemes... research what happened to those that bought in the past
Yeh... take the high prices that some gullible fools are prepared to pay and downsize...0 -
Snippets from the Times money section (28/1/06):
See an advisor with the CF7 qualification, they will have knowledge of the types of schemes, their risks, legislation and how income from these schemes affects state benefits.
More high street lenders are entering this market later in the year, widening your choice.
SHIP (safe home income plans) members have a no negative equity guarantee.
Other options: trading down, local authority grants, state benefits. Be aware that taking out the loan increases your income and may reduce benefit entitlement.
Equity release schemes are fine with the appropriate advice taken. Home reversion schemes, where you sell a portion of your home, are not yet regulated.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
I am speaking as one who has downsized. I heartily recommend getting a flat in a new build. Energy bills are far lower and there is much less work to do. Sell your property and enjoy your hard-earned money and later when you are older, take out an interest -only lifetime mortgage if you can afford it. Otherwise go for an equity release scheme.0
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Sorry, not an expert on the matter but in last Saturday's Guardian Money section there was quite a comprehensive article on the pros and cons of such schemes. Here's a link:
http://money.guardian.co.uk/weekly/story/0,16520,1696243,00.html
HTH!0 -
kittie wrote:I am speaking as one who has downsized. I heartily recommend getting a flat in a new build. Energy bills are far lower and there is much less work to do. Sell your property and enjoy your hard-earned money and later when you are older, take out an interest -only lifetime mortgage if you can afford it. Otherwise go for an equity release scheme.
Not sure that you can do equity release on flats, as opposed to freehold houses yet, though I'm sure you will be able to in time.Trying to keep it simple...0
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