Equity Release

FiremanSteve

Being a houseowner (lucky me) & aged 51 & looking to release equity from my estate....wondering why you have to be aged 55+ to do so?

Does anyone out there know how to release equity at such a young age as mine?

dzug1

It's called a mortgage - slightly different T&C but the effect is the same

iris

Buy a cheaper property

margaretclare

FiremanSteve wrote: »

Being a houseowner (lucky me) & aged 51 & looking to release equity from my estate....wondering why you have to be aged 55+ to do so?

Does anyone out there know how to release equity at such a young age as mine?

Probable reason is: you don't repay the loan within your lifetime - it's called a 'lifetime mortgage'. As you're not repaying the interest, it rolls up over time and you could end up owing a lot more than the house is worth - problem for your heirs.

zygurat789

margaretclare wrote: »

Probable reason is: you don't repay the loan within your lifetime - it's called a 'lifetime mortgage'. As you're not repaying the interest, it rolls up over time and you could end up owing a lot more than the house is worth - problem for your heirs.

Are you saying they have to pay up the difference?

margaretclare

zygurat789 wrote: »

Are you saying they have to pay up the difference?

That depends on the terms of the original loan. Many loans have a 'no negative equity clause'. You'd have to make sure this was written in.

It could be a big problem for them, though, if they think they're going to inherit something and there's nothing left for them to inherit.

zygurat789

margaretclare wrote: »

That depends on the terms of the original loan. Many loans have a 'no negative equity clause'. You'd have to make sure this was written in.

It could be a big problem for them, though, if they think they're going to inherit something and there's nothing left for them to inherit.

So if there was no negative equity clause who would have to pay since it is my understanding that you cannot leave your debts

margaretclare

zygurat789 wrote: »

So if there was no negative equity clause who would have to pay since it is my understanding that you cannot leave your debts

I didn't say they would pay. I said it could be a big shock, if they thought they were going to inherit something.

zygurat789

margaretclare wrote: »

I didn't say they would pay. I said it could be a big shock, if they thought they were going to inherit something.

But the question was "if there were no negative equity cklause who would pay?"

dzug1

zygurat789 wrote: »

But the question was "if there were no negative equity cklause who would pay?"

The estate of the deceased from whatever assets were left in it.

mjdh1957

And if the assets aren't sufficient, the debt will die.