Equity release schemes

rms1

Simple question yes or no.

pinkshoes

Presuming you're over 60 and no mortgage left, then contact Age Concern and talk to an independent financial advisor. They will point you in the direction of a reputable equity release firm.

GDB2222

rms1 wrote: »

Simple question yes or no.

Depends .... There are two types of ER scheme. One is a loan where the interest is rolled up, so do you need a loan? The other is where you sell the house but retain an entitlement to live in it rent-free for the rest of your life. If you expect to leave your home in a box and don't have anybody you want to leave it to, this may be for you. In either case, don't expect much money unless you are very elderly.

Annisele

Whether or not you should release equity is not a simple question - depends very much on your circumstances.

For most people equity release is an option of last resort, and not something that should be entered into unless all other options have been considered. However, where it is suitable, it can be an excellent product.

The FSA publishes basic information about equity release here, and more details here.

vet8

Equity release is fine as long as you have no-one you want to leave your money to. If you have no heirs, why leave it to the taxman, spend the money now. But realise you will get a poor rate for your house.

poppysarah

Your house is not a cash machine.

rms1

We will have no mortgage when we reach 65 and the kids have secure jobs and are better off than us and they have stated many times that they want us to do what is right for us. It would be nice to enjoy a large sum for retirement especially as our pensions are not what we hoped. But I know it is dangerous territory and would do nothing without expert independeant advise.

Thanks for all the input.

poppysarah

rms1 wrote: »

We will have no mortgage when we reach 65 and the kids have secure jobs and are better off than us and they have stated many times that they want us to do what is right for us. It would be nice to enjoy a large sum for retirement especially as our pensions are not what we hoped. But I know it is dangerous territory and would do nothing without expert independeant advise.

Thanks for all the input.

In the same way most pensions are a let down, imagine equity withdrawal will be similarly disappointing.
The best way of getting at the equity is to sell your home. However you then end up having to rent somewhere.

You could look at rent a room schemes for additional income. Teachers at colleges are CRB checked so make good lodgers - someone on here before has pointed out.

Annisele

65 is on the young side for equity release. By all means check it out, but if you don't actually *need* the money (i.e. your roof is not literally falling in right now) I suspect it would be better to either not do it at all, or wait until you're older.

Colincbayley

No.............. ( had to add some.. as reply was too short )

vet8

poppysarah wrote: »

Your house is not a cash machine.

I disagree.

A house is basically somewhere to live, but of course, people get involved with it as it is their home. But I think people need to be realistic. If your pension is not going to provide you with much money it is more important to get a decent income than get semtimental about a building.

Similarly, I am always amazed when older people have to move into a home and complain and worry when they have to sell their house to pay for it. (Whether the state should pay is another matter.) But assuming the state does not pay, it seems daft to me that they get upset about not leaving their house to their children when their need for care in a good home is far more urgent and real.

With my dad, my only concern was that he was cared for well, if he spent all his money and left me nothing that did not matter as long as he was O.K.