Equity Release - is it worth it?

margaretclare

We did equity release in 2003 following the death of my younger daughter. We did it to pay off an existing mortgage. We saw no sense in going on paying a mortgage for 15 years to age 83 just in time to die and leave it to someone else.

We heard all the warnings, gloom and doom etc but in fact it was one of the best things we ever did. We did it through an IFA who specialised in it and he got us a lifetime mortgage with interest rate pegged to the BoE rate. As this has been historically very low for many years, the interest hasn't rolled up at the rate we were warned it might. Of course, it could have gone completely the other way.

This is a 1930s bungalow and, over the years, we've modernised and updated to bring it up to 21st century standards and expectations, as well as essentials like replacing the asbestos roof tiles with modern concrete pantiles, and strengthening the roof supports. The most recent thing we've done is to have a modern disability-friendly bathroom installed with level access shower. As I've recently had hip revision surgery, and my husband is in hospital at the moment awaiting either knee reconstruction or above-knee amputation, the bathroom has been and will be an absolute godsend. Paying £270 a month on a repayment mortgage would have meant less money to do all that.

Oddly enough, doing all the modernisation has increased the property value so the existing loan is still only about 1/4 of the value, which is what it started as 13 years ago.

Get proper advice, shop around, be careful, make no sudden decisions. It works for some people but not for everybody.

merrydance

Hi

We have done this. As long as pay the interest every month it does not roll up to a large sum. We aim to downsize in a couple of years. (Family circumstances meant we could not do this yet.) and pay off the original amount we borrowed. We did this as we had credit card debts which were crippling us. The amount we pay out for the interest of this equity release is much less than the amount we were paying in credit card debt. We used an IFA so everything was clearcut.

Person_one

moneyistooshorttomention wrote: »

Thinks....must ask the one I know next time I come across her as to whether she wants to take on one of these schemes as the sex she was born or the sex she now is....

Sorry but, you're not really going to do that are you?

xylophone

Have you checked the information in the SHIP site? (Post 18).

Hervegw

New Question:

Hi Evryone,
Pretty new here. I'm French, 50yo. I've been living in UK for 10 years now and since my Dad's passed away last year I wish to care about my Mum. This mean living together in a suitable place for us.

We both own half of the same house in France (my parent's house) and I thought to negotiate an equity release with the bank on the property we have in France to buy here in the UK:

Have you got any advices for us?
Is equity release the best solution?
What is the best way to transfer your liquidity from abroad paying minimum taxes?

Thank you,
All the best

moneyistooshorttomention

Hervegw wrote: »

New Question:

Hi Evryone,
Pretty new here. I'm French, 50yo. I've been living in UK for 10 years now and since my Dad's passed away last year I wish to care about my Mum. This mean living together in a suitable place for us.

We both own half of the same house in France (my parent's house) and I thought to negotiate an equity release with the bank on the property we have in France to buy here in the UK:

Have you got any advices for us?
Is equity release the best solution?
What is the best way to transfer your liquidity from abroad paying minimum taxes?

Thank you,
All the best

You will need to start your own thread about this.