Equity Release

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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?
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  • dzug1
    dzug1 Posts: 13,535 Forumite
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    It's called a mortgage - slightly different T&C but the effect is the same
  • iris
    iris Posts: 1,389 Forumite
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    Buy a cheaper property
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    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.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
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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.

    Are you saying they have to pay up the difference?
    The only thing that is constant is change.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    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.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
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    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
    The only thing that is constant is change.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
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    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.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • zygurat789
    zygurat789 Posts: 4,263 Forumite
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    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?"
    The only thing that is constant is change.
  • dzug1
    dzug1 Posts: 13,535 Forumite
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    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
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    And if the assets aren't sufficient, the debt will die.
    Retired in 2015.
    Moved to Ireland September 2017
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