Equity Release

Car1980

My parents did it so they could pay off the mortgage and gift me a deposit for a flat. My dad was an accountant for the local authority so he knew his stuff.

Bear in mind the compound interest gets very expensive. You basically have to sell the house in 10 years time, which is what he did. He paid back £160k on a house he sold for £500k. This was with https://www.hodgelifetime.co.uk

bobthesod

Another Joe

Its the 'why dont you downsize' remarks that have also appeared in other threads like this that got to me No offence to the poster, but if i wanted to do that i wouldnt be asking the question. that got to me thats all
As my lad said. whatever is left is coming to me so dont worry, get yourself comfortable in your house. plus it is looking a bit shabby in places due to various things.

All in all it looks a good deal and i dont intend to jump in with both feet. i was hoping there might have been someone on here that had alrady done it, although looking a the earlier post regarding her Dad, i feel sorry for the chap.

ReadingTim

@bobthesod:

Asking about the best sort of equity release scheme is a bit like asking what is the best sexually transmitted infection to have.

It is therefore hardly surprising that quite a number of the answers are going to be along the lines of 'don't get an STI in the first place'....

Hope that helps.

davidmcn

ReadingTim wrote: »

Asking about the best sort of equity release scheme is a bit like asking what is the best sexually transmitted infection to have.

But without the fun element.

takman

bobthesod wrote: »

Another Joe

Its the 'why dont you downsize' remarks that have also appeared in other threads like this that got to me No offence to the poster, but if i wanted to do that i wouldnt be asking the question. that got to me thats all
As my lad said. whatever is left is coming to me so dont worry, get yourself comfortable in your house. plus it is looking a bit shabby in places due to various things.

All in all it looks a good deal and i dont intend to jump in with both feet. i was hoping there might have been someone on here that had alrady done it, although looking a the earlier post regarding her Dad, i feel sorry for the chap.

But it doesn't look like a good deal; your borrowing £12,500 and paying back £30,000.

You would be much better off getting a personal loan for £12,500 as it's not a particularly large sum of money. Alternatively considering your son is inheriting it all anyway then why not ask him for the money or for him to get a loan and give you the money.

usefulmale

bobthesod wrote: »

Oh dear

I wish people would actually read the question instead of telling me what they would do!

I just wanted to know if the fees that Age concern quote ( 1495) is the market rate to set it up?

That is all

What happens next , well we shall look further into it. I dont want to sign up and then find that i could have got the same type of deal for 1k (fees) less

I have looked into the conditions and they are#house is still 100% ours

Borrow 12500 as equity release
sols fees 650
Financial highwayman lol 1495
total borrowed say 15k

if NOTHING paid off the total amount repayable 30k
however we have the option to pay off an amount each year ( max 1500.so the 30k could reduce...BUT it will not increase

House is worth an example 250k at todays value

So if we both die tomorrow the house sale would be 250k-30k
leaving 220k

House prices are rising by say 5% per year

so in 7yrs time the house would be worth say 335 leaving him 300k

15 year, should we live that long it will be 494k- the 30k so who really gives a monkeys?

All i wanted to know is are those set up fees normal yes or no

Or to put it another way


My local supermarket sells cow butter at 5.00 per kilo

Can i get the same cow butter cheaper in another supermarket

hope that helps

Can I borrow your TARDIS?

You can't bank on that. It could be that in 7 years, prices have collapsed.

pineapple

OP I am thinking along similar lines. In my case I have no kids to inherit and don't care if there isn't a bean when I'm dead. But before you sign up to anything check your local council website. Our council used to give loans for home improvements - repayable when you moved or died. It was similar to equity release but without the strings you can find elsewhere. :j Otherwise compare as many schemes as possible and get independent advice.