Equity Release

seven-day-weekend

BertieMeldrew wrote:

Have you considered selling your UK home (or "part" of it) to your son? Presumably you spend a good part of the year in Spain and, by the sound of it, want to spend even more time "away" from your UK house.

Yes, this is an option we have thought of, but not viable at this present time (also son has said he never wants a mortgage as he does not want the debt).

We will downsize in Spain, which isn't ideal as the renovated wreck will be very small, but hey, one can't have everything.

('why not?' my husband always says when I say this!:rotfl: )

Thanks to everyone for your good advice.

Art_2

These schemes are not available unless you are over 60.
Even at this age the amount of money you can raise is very small.

Two recent entrants to the market are worth looking at. Both Norwich Union and Prudential have introduced schemes that are worth considering.

Also, before commiting to a scheme it is always advisable to have a solicitor look at it to make sure it is suitable for you.

regards,
Art.

margaretclare

Art wrote:

These schemes are not available unless you are over 60.
Even at this age the amount of money you can raise is very small.

Well, it depends how much you want and what you want it for. We released 25% which paid off the original mortgage. I have emphasised that it's a serious matter which requires careful consideration and everyone's circumstances are different.

Two recent entrants to the market are worth looking at. Both Norwich Union and Prudential have introduced schemes that are worth considering.

Norwich Union's scheme was around at the time we did ours - 3 years ago now. Ours is with Northern Rock.

Also, before commiting to a scheme it is always advisable to have a solicitor look at it to make sure it is suitable for you.

This normally happens. We had to sit down with the conveyancing solicitor and he went through a check-list which he was required to do - it included such things as 'have you discussed it with family members' and 'do you understand that there could be an impact on means-tested benefits'.

Margaret

Art_2

margaretclare wrote:

Well, it depends how much you want and what you want it for. We released 25% which paid off the original mortgage. I have emphasised that it's a serious matter which requires careful consideration and everyone's circumstances are different.

Are you saying these schemes are available to people under 60?



Norwich Union's scheme was around at the time we did ours - 3 years ago now. Ours is with Northern Rock.

I was referring to a new plan they introduced about a year ago. The Prudential plan has the advantage of allowing you to draw-down the amounts of cash as you need it. This had a major effect in keeping interest to a minimum.



This normally happens. We had to sit down with the conveyancing solicitor and he went through a check-list which he was required to do - it included such things as 'have you discussed it with family members' and 'do you understand that there could be an impact on means-tested benefits'.

According to the CAB many people take out these plans without fully understanding them. I think most reputable lenders will now insist you take advice.

Regards,
Art.

EdInvestor

I think most reputable lenders will now insist you take advice.

Let's hope not as the regulator has already discovered that equity release is very prone to misselling by greedy advisors who find the elderly are easy prey.

sukey13

I think Equity release is a really bad idea.

I am pleased you have decided to downsize your property in Spain and wish you lots of luck with the wreck or whatever project you lay your hands on.

margaretclare

Art wrote:

margaretclare wrote:

Are you saying these schemes are available to people under 60?

No, I haven't said that at all.

I don't know about in general, but one of us had to be 68 before we could release 25% of the equity at the time. As I've explained, we'd have been paying a mortgage until we were 83 if we hadn't done this.

I was referring to a new plan they introduced about a year ago. The Prudential plan has the advantage of allowing you to draw-down the amounts of cash as you need it. This had a major effect in keeping interest to a minimum.

This again depends on why you want it - if you're wanting to release it a bit at a time as monthly income, this would work. I've emphasised that everyone's circumstances will be different.

It's also worth mentioning that this property was valued at £140K 3 years ago and now is valued at £165K what with the new roof and everything, which we would have struggled to do if we'd still been paying £260 a month to the mortgage.

According to the CAB many people take out these plans without fully understanding them. I think most reputable lenders will now insist you take advice.

Yes, it requires a lot of thinking about - we did it through an IFA who got us the best deal by searching a database of companies, and we had to talk it through with the conveyancing solicitor before we signed the final papers. Your home is your biggest asset and anything like this really has to be thought about and gone into most carefully.

Margaret

seven-day-weekend

Well....we're both a bit gobsmacked.

We have had an estate agent round to value the house we live in , and the wreck (we explained to him what it would be like once renovated), and he has valued BOTH of them at twice what we expected.:eek:

It's great news, but we've had to partake of too much of the local vino to celebrate.

So....we may be able to realise enough capital to do what we want just by selling the renovated wreck. :beer: (Even if we sell at less than the EA said).

Or....we may sell both and relocate to northern Spain where the houses are cheaper and have MUCH more capital than we thought.

We are going to have another EA come next week just to make sure it wasn't a fluke.

Can't believe it.....will have to lie down now.....

*****faints*****

shown73

You didn't mention how old son was, but to be honest, it sounds as though he could do with a dose of reality. Doesn't want debt, indeed! Who the heck does? It's all part of standing on one's own two feet, I think.

seven-day-weekend

shown73 wrote:

You didn't mention how old son was, but to be honest, it sounds as though he could do with a dose of reality. Doesn't want debt, indeed! Who the heck does? It's all part of standing on one's own two feet, I think.

You don't know my son's circumstances and anyway I think it's quite admirable that he doesn't want the debt. He doesn't even have a credit card. He can always rent a house later if he wishes.

FYI, he HAS lived away from home. We asked him to come back to look after the family home when we went to Spain.

Please do not judge when you do not know.