Lifetime mortgage

fizzy_lizzie

I have paid back my "ordinary" mortgage. I am wanting to either buy a share of the freehold of my flat or extend its lease which is only 56 years now! So I am considering taking out a lifetime mortgage to finance one of these options. I am not expecting to die soon but am over 65! Any experiences of the above? My friends wince when I mention lifetime mortgages.

CloudCuckooLand

Shame the lease was not extended when you were younger/had income to so without such products.

Whats the difference between letting things stay as they are and getting a poor price (because of short lease etc) upon your death - you won't live 56 years...

...and spending money to extend the lease and then giving away half (if not 100%) of the property to pay what might be 30 years of interest on the debt..?

Either way, you are reducing what will be left to your inheritors.

If you do plan to move, I realise the lease will restrict selling. Its likely that tying a lifetime mortgage to the place, will give you a nasty shock of compounded interest and hinder your moving options, unless you find a portable product.

Good explanation of the compounded interest here; http://www.learnmoney.co.uk/equity-release/lifetime-1.html Though note they don't go beyond 15 years on the calculations. Suspect the compound effect would be painful at 20+ years.

Option of last resort seems to be the consensus.