Equity release?

geoffky

I would call the equity release deals legalised theft..

bigadaj

geoffky wrote: »

I would call the equity release deals legalised theft..

Yes but which way. Interestingly the oldest woman in the world took out an equity release many years ago, it wasn't formalised and was somewhere in Europe but she effectively got a lump sum when she was in her seventies, from her lawyer who got the house when she died. She eventually got to live to nearly 120, and the lawyer, who was in his forties when the laon was made, died well before her.

Like any form of investment or financial transaction whether it is good or bad depends on the specific details.

geoffky

bigadaj wrote: »

Yes but which way. Interestingly the oldest woman in the world took out an equity release many years ago, it wasn't formalised and was somewhere in Europe but she effectively got a lump sum when she was in her seventies, from her lawyer who got the house when she died. She eventually got to live to nearly 120, and the lawyer, who was in his forties when the laon was made, died well before her.

Like any form of investment or financial transaction whether it is good or bad depends on the specific details.

Her money was well gone and his family must of done well out of it...



EQUITY release schemes were today labelled 'the lifestyle dream that can turn into a nightmare'.
Consumer organisation Which? warned that raising even a comparatively small sum could leave pensioners owning hardly any of the value in their home.
The rapid growth in the number of 'asset rich, but cash poor' older people in Britain, has led to a boom in equity release schemes offered by banks and building societies.
But Which? says there is a real risk that there will be nothing left to pass on to family members.

• How to compare equity release schemes


In a report in its magazine, published today, it says that if a 60-year-old borrowed an £80,000 lump sum with a typical equity release lifetime mortgage, it could cost them £256,570 by the time they were aged 80, and £343,350 if they reached 85.
Which? also claims equity release mortgages are advertised irresponsibly, citing Norwich Union's suggestion that its scheme could pay for a trip to New York or 'something for the family'. Illustrating this is the finding that the minimum £15,000 loan with Norwich Union would cost £28,000 after ten years' time.

Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-1595747/The-equity-release-nightmare.html#ixzz23Li7pfEg

oopalah

Thanks, everyone, for your replies. It seems a bit scary. I think I'll look into it a bit more before I decide.

sleepless_saver

geoffky wrote: »

Her money was well gone and his family must of done well out of it...

They didn't do well because he had to pay her a monthly amount as well as the lump sum - and after the lawyer's death his widow had to keep paying Madame Calment every month! They ended up paying a lot more than the house was worth.