Equity Release

margaretclare

Anyone considering equity release should first look at this website: https://www.ship-ltd.org

SHIP = safe home equity plans.

It can work, but it depends. You need a specialist adviser, someone with experience who will work for the client, definitely NOT a plan 'sold' by any bank!

Interest rates are now very low. Some people, however, did this a few years ago on a fixed-rate plan, therefore they have not benefited from the fall in the Bank Rate.

It is something that deserves to be looked at calmly and rationally, without scare stories which may not apply.

However, if this couple are living in a house that's much too big and too difficult to maintain, 'downsizing' would be the better option. Many older people seem to leave the whole idea of 'downsizing' until it's far too late and they can no longer cope with it, which may be the case here.

roy62

Who wants to be in debt in their old age.

margaretclare

roy62 wrote: »

Who wants to be in debt in their old age.

If we had not done equity release we should have gone on paying the mortgage until we were 83.

Julie_J

Don't touch equity release is my advice - you lose too much.

Did either of them serve in the Forces? Perhaps contacting SSAFA or the British Legion who might be able to point you in the right direction either for advice, assistance or what's available from local council.

Renting a stairlift might be a better option than buying as you don't know how long it will be needed for = use some of the attendance allowance. Or purchase a reconditioned one - new ones cost about £1,500 for a straight one or curved for around £3,500. Big name companies seem to charge more!!!

Level access showers cost around £3,500 but they maybe ok with just a shower cubicle which costs a lot less.

If either served in the RAF I think the RAFBT have a loan scheme whereby you can borrow up to a certain amount for certain essential projects and they put a charge on the house so when its eventually sold they get their money back. They charge a small nominal amount of interest that can be paid each year (best) or added to the debt.

If they weren't in the RAF I think the British Legion have a similar loan scheme too - or used to.

There are rules about who's eligible and legal paperwork involved but much better than equity release.