Equity Release

oldtom

Hi,
Aged 55, single, 2 grown-up kids who live away, no mortgage (I own house), don't work, rough guess house worth £100-120k. Is equity release a sensible option? If this subject has been covered already, could someone point me in the right direction please?

Ian_W

At 55 I wouldn't have thought so. Tends to be better value as you get older and, though not a one-shot weapon, does rely on rising prices for you to be able to do it again if you need more as you get older. 2 factsheets that may help:
https://www.helptheaged.org.uk/NR/rdonlyres/84198B3B-A3D7-4FA7-85DD-69DA36696F8D/0/equity_release_advice_guide.pdf
and
https://www.ageconcern.org/AgeConcern/Documents/Raising_income_or_capital_from_your_home_FS12.pdf

How much are you looking to raise, do you have earnings? A straightforward remortgage may well be a better option depending on these 2 factors.

agal

Ian_W wrote: »

How much are you looking to raise, do you have earnings? A straightforward remortgage may well be a better option depending on these 2 factors.

I'm trying to understand how long a remortgage would "last". Are there any web-sites/discussions on this?
For instance, I remortgage my house for £100K. I use the £100k for income while simultaneously making interest payments. At some point I will run out of money but I can't see how to calculate this.

oldtom

Thanks Ian W, I do not work and was thinking about £25k

Ian_W

agal wrote: »

For instance, I remortgage my house for £100K. I use the £100k for income while simultaneously making interest payments. At some point I will run out of money but I can't see how to calculate this.

Not certain but I don't think you'd get a remortgage if the purpose was to supplement your income - OP doesn't say that is what is for though.

JoeK_3

Agal, a remortgage lasts for the term that was offered by the lender and signed for by you. I suggest that you get all the details from your lender and fast.

JoeK

JoeK_3

Tom, equity release is only for people who have retired and have ceased working.

What appears to be the problem and how are you managing to live and not work?

JoeK

toonfish

JoeK wrote: »

Agal, a remortgage lasts for the term that was offered by the lender and signed for by you. I suggest that you get all the details from your lender and fast.

JoeK

not necessarily - there are open ended deals available that cease on death, or whenever you choose to repay them

oldtom

It's a little complicated but there is enough income week to week, (so it's purpose is not supplemental), but as time goes by, little things need doing which will only get worse if not remedied. It isn't at all dilapidated so it's purpose is purely preventative more than anything else. trying to be pro-active...(although the kitchen could arguably need replacing).
The only other option, as I can see, is to sell it, bank the money and rent, something I am v.reluctant to do.

agal

oldtom wrote: »

The only other option, as I can see, is to sell it, bank the money and rent, something I am v.reluctant to do.

One further option to consider is taking in a lodger - there is tax relief available on the rental income (sorry, don't know the details of the rent-a-room scheme.

agal

JoeK wrote: »

Agal, a remortgage lasts for the term that was offered by the lender and signed for by you. I suggest that you get all the details from your lender and fast.

JoeK

Thanks, JoeK, but I was just thinking aloud. I don't personally have a mortgage any longer and was trying to size up the pros and cons of a remortgage versus equity release.