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Equity release alternatives
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pineapplesherbet
Posts: 111 Forumite
Hi, my mum is 79 and has a nice bungalow but only a few thousand pounds in savings. She is in receipt of attendance allowance and old age pension and a small pension from my Dad's old company (he is dead) She needs to get work done on her house which she can't afford (guttering, floor repairs) and has looked into equity release but it is exorbitant so she is trying to find out if there are any grants or alternatives. Does anyone have any ideas please?
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I have to say that the first thing that comes to mind is using her savings to fund the repairs.0
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The only grants I know about are those for insulation and - I think - installing central heating but that one was means-tested. The insulation one was available to those over 70 or 75. Your local Age concern office or CAB would probably know about them.0
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Probably better to get a low interest bank loan using house as security and you signing as a guarantor. I presume that you and your siblings (if any) will inherit the house on her death. Guttering and floor repairs should not cost a lot. I agree with your analysis on equity release, avoid!!
One other thought is a ZOPA loan you should get a really good rate.0 -
I know several people who have had work done through Anchor - https://www.anchor.org.uk/services-in-your-home/home-maintenance-and-improvements/default
They have a scheme called Staying Put. If there is any way your mother can get help in funding some of the improvements, they will know and help her apply.0 -
Does anyone in the family have any spare capital. They could arrange a private mortgage for your mum secured on the value of house and repayable on the sale of the house. Any solicitor could draw this document up fairly cheaply. It may also be possible to have the interest covered by additional benefits so your mum would not be out of pocket.
I would avoid equity release it is generally a rip-off.0 -
Most councils have their own version of a type of equity release whereby they fund repairs/improvements in exchange for an interest in the property. I would go to your local council website and check. I know of someone who had their whole house done this way.0
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She has 'a few thousand pounds'.
You save up for a rainy day. The rainy day is here. I fail to see the problem unless the repairs are very extensive.0 -
She has 'a few thousand pounds'.
You save up for a rainy day. The rainy day is here. I fail to see the problem unless the repairs are very extensive.
Yes it seems that the age old attitude is still with us. She's got money, but why spend it when there is a chance that the poor old taxpayer will pick up the tab instead!
I am embarassed to say that I am British!0 -
What are her saving for, pineapplesherbert?
Guttering repair and rain? Raining day savings - bit obvious really.Member #14 of SKI-ers club
Words, words, they're all we have to go by!.
(Pity they are mangled by this autocorrect!)0 -
I agree that she should use her savings to do repairs on her house but it can be difficult persuading an elderly person that they should part with their nest egg.
I'd avoid equity release and assure her that she doesn't need to worry about her funeral expenses. Maybe that's why she doesn't want to spend the savings she has at the moment." The greatest wealth is to live content with little."
Plato0
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