Equity Release guide discussion

Keep_pedalling

Canadoug said:

’m considering a lifetime mortgage but don’t like the idea of the house being sold by the loan company at the end. My plan would be to pay off the outstanding loan early to avoid the house being sold out from under our adult son who lives with us. 

Has anyone successfully done this

If you are in a position to pay it off latter, why do you even need a ER? Surely a more traditional loan would be more appropriate.

AndyMan56

My mother took out equity release long term fixed rate mortgage 10 years ago, she borrowed £32000, it costs us £5400 per year as interst! She is now in a care home, we owe Aviva approx £80000, question is can the care home demand the difference if the house is sold before she dies, in other words will me n my family get any inheritance from the sale of the house?

TELLIT01

From my understanding, the property is sold once the occupant goes into care and it is clear they are not going to return.  Contribution to care home costs will be dependant on the amount remaining from the sale, after the payment to Aviva.  There is a permitted savings figure so the care home won't be able to take all the money from the sale of the property.

Keep_pedalling

AndyMan56 said:

My mother took out equity release long term fixed rate mortgage 10 years ago, she borrowed £32000, it costs us £5400 per year as interst! She is now in a care home, we owe Aviva approx £80000, question is can the care home demand the difference if the house is sold before she dies, in other words will me n my family get any inheritance from the sale of the house?

Yes, because self funding should stop before savings reach zero. How much no one can answer as we don’t know how much equity is in the house, what her care costs are and how long she will live for.

You should get the house sold ASAP as those interest charges are still racking up.

Browntoa

https://www.thisismoney.co.uk/money/mortgageshome/article-9482139/Hope-thousands-tangled-unfair-equity-release-trap.html

203846930

Browntoa said:

https://www.thisismoney.co.uk/money/mortgageshome/article-9482139/Hope-thousands-tangled-unfair-equity-release-trap.html

Age Partnership is inviting anyone with an existing equity release loan to contact them to see if they can move to a cheaper rate, whether or not it arranged the original loan.

ashpan

I’ve read about equity release where the interest doesn’t compound as long as you make regular repayments, where can I find out more? My home is worth £600k and I’d like to release £50k to each of my two children now  and £100 for myself in a year or so. I’m in good health 

Nick_Lovell

Ashpan you can indeed service the interest on a lifetime mortgage and even pay off capital. Normally up to 10% per year. From what you have said you need a lump sum solution with a drawdown facility. 

TELLIT01

ashpan said:

I’ve read about equity release where the interest doesn’t compound as long as you make regular repayments, where can I find out more? My home is worth £600k and I’d like to release £50k to each of my two children now  and £100 for myself in a year or so. I’m in good health 

How much you will be able to release will depend on your individual circumstances and you definitely need to take expert advice on the options.

ronnieD43

We are in our 70s and would like ER. On making enquiries and answering question, we have a Family Asset Protection Trust taken out 7yrs ago and have been told we cannot do ER. We own the house outright. Bought for £8000 now valued at £225000. Is there anything we can do to get around this please. We don't want to move as we've been here for 47yrs and its home.