Equity Release
FiremanSteve
Forumite 2 Posts
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?
Does anyone out there know how to release equity at such a young age as mine?
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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.
Before I found wisdom, I became old.
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.
Before I found wisdom, I became old.
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.
Before I found wisdom, I became old.
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.
Moved to Ireland September 2017