equity release

enthusiasticsaver

Doesn't your ex have to agree to this if they still have an interest? Why would he or she agree to it?

Linton

So you are 61 and have £50k of debts and £120k equity. Looking at one of the main provider's website it would seem that the maximum amount you could get for equity release rolling up the nterest into the mortgage is 20% of the value of the house.

A quick bit of arithmetic shows that no matter what the value of the house this could never get you enough money to pay off your debts and your mortgage......

Just to pay off £50k with roll-up equity release would require a house worth £250k. But that would mean you had an outstanding mortgage of £130k which would still need to be paid off.

So you would need to be thinking about an interest only lifetime mortgage with which you could get say 50% of the value of your house. To analyse this we really need to know the size of the outstanding mortgage.

davieg11

If I remember correctly one of my family got £20k equity release around the age of 62 and owed Scottish Widows £73k by the age of 83.

kidmugsy

davieg11 wrote: »

If I remember correctly one of my family got £20k equity release around the age of 62 and owed Scottish Widows £73k by the age of 83.

I dare say, but did it prove good value? What was the £20k used for? Did the £73k matter?

kidmugsy

ukmartian wrote: »

I would like to clear all my debts etc, unfortunately they will run for several years after I retire. The only fallback I have is my property ...

Have you considered improving your finances by taking a lodger? It's often tax-free, courtesy of the Rent a Room scheme. if your annual rental income is below £7,500 you don't even need to report it to the taxman.

https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Mnd

I am 63 and retired, my wife is 57 still working, we have already paid off our mortgage and when she gives up work (4 years) we will have assets, savings and pension funds of approximately 100k. We have a house valued at 300k. We will have spent 20 years getting our home exactly as we want it inside and out.

I do have a son 28 who is plowing his own furrow in life, and has no requirement for us to leave him a third of a million pounds and is fully aware of our situation and plans and fully agrees with them

We do not wish to downsize thank you, and we see no problem in later years using a roll up mortgage to give us a comfortable retirement that we have worked over 40 years each to get to this point

davieg11

I dare say, but did it prove good value? What was the £20k used for? Did the £73k matter?
Of course it wasn't good value! £20k got spent on holidays and bingo and the family inheritance was £73k down!!!

ukmartian

Thank you all so much, I have learnt a lot...I will have to get a exact valuation ..houses go for between 150 and 200k sometimes more...I will have to find a good ifa I don't want to leave problems when I die but both my children want me to retire without all the worries my ex has left me with , plus my health does not looks like it will be that good in 5 years lol..at the very least I just want to get my debts cleared the longer I can leave it the less they will be ....my DMP is through step change who has helped a lot ...all this because some pen pusher decided it would be cheaper to make me redundadant ...£30+ a year with a marriage to less than 20k no marriage and debts ain't easy...the only consolation is I know it wasn't my fault .....so thanks everyone for you input....

kidmugsy

davieg11 wrote: »

Of course it wasn't good value! £20k got spent on holidays and bingo and the family inheritance was £73k down!!!

So the old folk got to enjoy their own wealth? Outrage!

Buggins

Without getting involved in the rights and wrongs of equity release, I would suggest a chat with Stepchange who I found through MSE some while ago and were most helpful.