MSE News Discussion: Should you equity release?

kingstreet

medicalman320 wrote: »

Hello
The plan is to repay the mortgage on the second house in one total payment within one to two years from proceeds sale of the first house.We are prepared to make this a condition for any arrangement
Thanks for your interest.

Do you let the property on which you wish to raise the money for improvements to your main residence?

I suggest you open a thread of your own on the Mortgage & Endowments Board, as you will get more help that way. This thread had pretty much died before it was resurrected by paul.n, and it's an an accident I saw your post.

There are remortgage options.

medicalman320

Hello
Neither property is rented nor will be.
Thanks for you interest and advice.
Good Luck
Brian

kingstreet

I see.

In which case I can think of no other option than to sell the property. You may wish to discuss the issue with an adviser with extended permissions, but essentially, your options are sell, equity release with interest roll-up, or equity release perhaps paying interest-only, but if the payments are not affordable, no lender could afford to lend to you on the latter basis, for fear of chastisement from the FSA.

medicalman320

Seems strange doesn't it that there are thousands of people like my wife and me who have worked very hard in the past and don't need to work now or to rent out a property. We cant borrow basically because we dont have borrowing or need to rent out. We enjoy both properties but simply want to raise some money to improve one of them so we can sell it, pay off the mortgage and live in it. We will be liquidating equity tied up in property and hopefully it will benefit the expansion of the economy in a more useful way.
I don't want to use equity release 'per se' because I happen to distrust most of the organisations involved in it and am forever surprised that the FSA approve of any of them anyway.
My feeling is that the FSA gets in the way as often as it assists these days but that is another discussion for another day.
Thanks again for your time and kind comment.

medicalman320

Hi
I omitted to say in last reply - repayments are no problem as we wouldn't want the money for more than two years at the most. We have cash in the bank but not enough to bridge with. Also I would not have asked the question without being certain of our ability to pay repayments.
Onward and upward!

Let_Us_See

medicalman320 wrote: »

We need a sort of short term equity release plan but do not trust the regular 'till death' plans on the market.

A lifetime mortgage may not be your first choice. However, what don't you trust? A lifetime mortgage is a regulated product and the issued Key Facts Illustration (KFI) will provide full features, costs and interest rate prior to submitting an application. There would be no surprises, or anything "not to trust". Finally, death is not the great redeemer, as you can redeem the mortgage at any time, although T & Cs may apply in the early years. It is not purely a "borrow until you die" product.

For asset rich-cash poor clients a lifetime mortgage can provide a flexible tool for both short and long term borrowing when all other lenders have turned their backs. Talk to an experienced lifetime mortgage broker who is not afraid to think laterally.

Let_Us_See

paul.n wrote: »

I am now in a similar position, SANTANDER my mortgage company are only offering standard rate mortgages upon renewal to existing customers.
But of course they offer exceptionally low rates to new borrowers, quite unbelievable really.
My only option now appears to be equity release, run by the rather dodgey insurance industry, and pay an even higher rate of interest, if I want to maintain my current equity in the property.

Surely, not? You have the option of remaining on Santander's SVR? If so why are you considering a lifetime mortgage?

medicalman320

Let_Us_See wrote: »

A lifetime mortgage may not be your first choice. . Talk to an experienced lifetime mortgage broker who is not afraid to thinks laterally.

Thanks for that.
I find it difficult to find such an adviser, although plenty present as such. We had a home visit from an equity release specialist who was such a waste of time and so condescending that I had to restrain my wife from throwing him out physically, well almost.
I like the way you put things though and it has persuaded me to have another look. Thanks again.
Medicalman320@gmail.com

Blue_Max

The property that I live in was bought in the name of my sister who live abroad. I hold a General Power of Attorney". My pension is too little and I need additional income. So we are thinking of transferring it to my name and then get an equity release.
The flat was bought for £50,000 in 1998. No mortgage. It is now worth £165,000.
Any tax implications or anything else to be aware off?
Many thanks.

mike56

geoffky wrote: »

never...a house is not a cash machine its a roof over your head and equity release was being used as a get out of jail card by too many people.

this opinion sounds so much like my dear old dad's philosophy that "a mortgage was just a millstone round your neck".