Equity Release

wheezy57

Does anyone have any experience with ER. It is an option I must consider. I have bad credit rating but high equity in my property. I am 60, work full time. My grown up children have no expectations with inheritance but I would involved them in all decision making.

Please post if you have had good or bad experiences - it will all help to help me to make an informed decision as to the next step..

Thank you in advance...

kingstreet

Imagine if you asked someone to comment on "cars?"

You need to be more specific in the equity release scheme you are considering.

wheezy57

I only know what I have read on the internet but would like to get more information from anyone who has either good or bad experiences. I know it sounded a bit random but I dont know any specifics.

kingstreet

In which case, try "SHIP" first;-

http://www.equityreleasecouncil.com/home/

wheezy57

Thank you for that info. A good starter for me.

Wh05apk

The problem with forums like this, is that generally you will only get feedback from people who have had issues.

Equity release is a low volume market, so most views are based on hearsay, Equity release, is not for everyone, and should really be considered as a last resort.

You would probably do best speaking to a qualified broker, who should spend some time explaining the pro's and con's with you, you should not feel pressured, if you do walk away.

Let_Us_See

wheezy57 wrote: »

Please post if you have had good or bad experiences - it will all help to help me to make an informed decision as to the next step....

Equity release advice is very much subject orientated and providing generic advice is not very helpful and often a waste of time. Whilst lifetime mortgages provide both advantages and disadvantages, I would suggest good or bad experiences are linked to the quality of information provided, the advice received and whether the appropriate produce to suit your needs was recommended. I have sent you a pm if you have a specific requirement or query.

wheezy57

I have since been told that I cannot go down the ER road. I have a mortgage.

John1993_2

Perhaps you could increase the mortgage, then, and free up some cash this way.

Let_Us_See

If your existing residential mortgage balance is higher than the amount of lifetime mortgage borrowing available, this is calculated on your age (60) and value of property, then for the time being you may not be able to proceed. However, if you can provide a realistic value of your property I will be able to assess your maximum borrowing under an ER product.

holly_hobby

Although you have a traditional residential mge now, the lifetime mge arrangement you're considering would (in an ideal world) pay that off, leaving you with no monthly mge payments, if you elect to have all interest rolled up onto the debt.

This roll up arrangement, over time would obviously erode the free equity in the property (ensure a no-negative equity lender is sought), until the mge is redeemed typically on entry into long term care of death - but you say you have prelimarly discussed this with your family whom are supportive of your current thought process.

At age 60, you're looking at a max lifetime mge arrangement of broadly around 25% of the market value of the property (younger you are, the lower the amount available, due to the percived potential longevity of the arrangment) - at interest rates typically between 6% -7%.

There are arrangements where you can elect to meet the monthly interest, effectively ringfencing the debt, but then you're back to having a commitment, which I don't know if is what you are looking for.

The Equity Release Council link that Kings. has noted for you, wil give you the basics, as will googling the subject (plus you'll see ER advising firms pop up).

You will need to source an Equity Release advise to facilitate advice and any arrangement you may want to pursue ....

Are you sure an ER mge is the most suitable or only solution ?

How bad is the adverse (type of adverse, who with, when registered, amounts involved ?)

What income will you have post retirement ?

Additionally, unsure, why you are considering a ER mge, but if its commitment and affordability based, have you ensured you are in reciept of all income due to you (inc any DWP qualification), and/or have you thought about selling up and downscaling (ie going into rented if your personal circs won't obtain a mge), whilst using your free equity to pay off any debt, and act as additional lifestyle funding/annuity or investment funding).

One thing you also need to be aware of, is that the value/free equity in your primary residence is excluded from any assessment for meants tested benefits (save state assisted Long Term Care), however any equity released from your property and held by you, will be accordingly be assessed by DWP as savings (as its capital you have access to), and may effect any entitlement to means tested benefits you otherwise would satisfy. Your ER adviser should discuss this with you and more, but I wanted to make sure you are aware of, and fully consider this as part of your evaluations.

So, having the bones, I would say you now need to sit down with a mge broker (if he's also ER qualified* that will kill 2 birds with one stone if you remain considering this option), to hammer out just what is available to you, given your particular situ and requirements.

*If you're unable to locate an ER adviser locally yourself, you can try the SOLLA* website - http://societyoflaterlifeadvisers.co.uk, whom will give details of advisers local to your area ( *SOLLA members have in addition to the relevant quals, also chosen to be independently assessed and accredited as proficient in this area of advice - although it should also be said that an ER adviser who has chosen not to be assessed and accredited, isn't necesssarily any less knowledgeable in the subject)

Hope this helps

Wish you well ...

Holly x