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  • FIRST POST
    • George115
    • By George115 11th Mar 17, 10:34 AM
    • 9Posts
    • 3Thanks
    George115
    Equity Release
    • #1
    • 11th Mar 17, 10:34 AM
    Equity Release 11th Mar 17 at 10:34 AM
    My in-laws are considering an equity release scheme and both are in receipt of direct payments to help to pay for daily personal care. We contacted the local authority to ask if their allowances will be affected if they go ahead with equity release and were told that they would not be able to answer this question until the equity release was done. Has anyone been in a similar situation? Does anyone know of a website / official body we can go to for advice? We have been on the Equity Release website and are unable to find any information regarding this issue on there.
    Thanks, George.
Page 1
    • NeilCr
    • By NeilCr 11th Mar 17, 11:23 AM
    • 758 Posts
    • 758 Thanks
    NeilCr
    • #2
    • 11th Mar 17, 11:23 AM
    • #2
    • 11th Mar 17, 11:23 AM
    How about going through AgeUK?

    http://www.ageuk.org.uk/products/financial-products-and-services/equity-release/
    • George115
    • By George115 11th Mar 17, 11:56 AM
    • 9 Posts
    • 3 Thanks
    George115
    • #3
    • 11th Mar 17, 11:56 AM
    • #3
    • 11th Mar 17, 11:56 AM
    Thanks Neil. Will check it out.
    • Bogalot
    • By Bogalot 11th Mar 17, 12:07 PM
    • 1,008 Posts
    • 2,567 Thanks
    Bogalot
    • #4
    • 11th Mar 17, 12:07 PM
    • #4
    • 11th Mar 17, 12:07 PM
    It's not AgeUK that provides the equity release service, it's a third party that pays commission to them for referrals. They bury this in the small print. I would avoid them for this reason alone.
    • NeilCr
    • By NeilCr 11th Mar 17, 12:18 PM
    • 758 Posts
    • 758 Thanks
    NeilCr
    • #5
    • 11th Mar 17, 12:18 PM
    • #5
    • 11th Mar 17, 12:18 PM
    It's not AgeUK that provides the equity release service, it's a third party that pays commission to them for referrals. They bury this in the small print. I would avoid them for this reason alone.
    Originally posted by Bogalot
    It's not exactly buried in the small print - it's out there in big letters!

    I guess there is a hope/suggestion that AgeUK may have done due diligence on the third party and that gives some reassaurance. Difficult to work out who is reputable out there. In addition, AgeUK may provide a separate benefits service
    • Bogalot
    • By Bogalot 11th Mar 17, 12:38 PM
    • 1,008 Posts
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    Bogalot
    • #6
    • 11th Mar 17, 12:38 PM
    • #6
    • 11th Mar 17, 12:38 PM
    It's not exactly buried in the small print - it's out there in big letters!

    I guess there is a hope/suggestion that AgeUK may have done due diligence on the third party and that gives some reassaurance. Difficult to work out who is reputable out there. In addition, AgeUK may provide a separate benefits service
    Originally posted by NeilCr
    The commission note is at the bottom of the page. It's certainly not in big letters.

    Why do you assume AgeUK have done due diligence? That was not the case when they sold expensive utility tariffs in exchange for £6 million from E On.

    I would at least edit your initial advice to point out that "going through AgeUK" is not actually going through AgeUK at all.
    • NeilCr
    • By NeilCr 11th Mar 17, 12:46 PM
    • 758 Posts
    • 758 Thanks
    NeilCr
    • #7
    • 11th Mar 17, 12:46 PM
    • #7
    • 11th Mar 17, 12:46 PM
    I don't assume. I said hope/suggest

    It is very clear from the link that AgeUK say the advice is provided by a third party and that they have "teamed up" with the company concerned. Point taken re commission not being so "out there". I was really talking about using a third party being transparent
    • teddysmum
    • By teddysmum 11th Mar 17, 4:44 PM
    • 7,155 Posts
    • 4,221 Thanks
    teddysmum
    • #8
    • 11th Mar 17, 4:44 PM
    • #8
    • 11th Mar 17, 4:44 PM
    If you can't get the information you want (quoting income and the value of the of released funds would help), ask your MP to find out for you, as he/she will be able to access someone who does know the answer, rather than relying on a call centre person working from a check list.
    • George115
    • By George115 12th Mar 17, 10:48 AM
    • 9 Posts
    • 3 Thanks
    George115
    • #9
    • 12th Mar 17, 10:48 AM
    • #9
    • 12th Mar 17, 10:48 AM
    Thanks to all for the helpful advice.
    • pmlindyloo
    • By pmlindyloo 12th Mar 17, 11:27 AM
    • 10,281 Posts
    • 12,166 Thanks
    pmlindyloo
    This is a useful article about equity release>

    https://www.moneyadviceservice.org.uk/en/articles/using-an-equity-release-scheme-to-fund-your-care

    The reason why social services are saying that they do not know whether it will affect their direct payments for social care is because 1) there are different kinds of equity release and 2) it may depend on what the money is used for.

    Since direct payments are subject to a means test then if they took a lump sum for something in particular e.g house repairs then this may be ignored as they are essential payments but if a lump sum was used to make gifts (for example) then this may be considered as deprivation of capital.

    Also, getting a lump sum of money may effect their benefits (if they receive any).

    So, it is a decision that needs some careful thought.
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