Equity Release guide discussion

brianben

Hi.

I'm 80 with no mortgage, no one really to leave anything to, and a house worth 250,000.

I want to take some of the value out of the house but not sure of the best way to do it.

Read about ER but not 100% about detail.

Any advice welcome.

Thanks Brian.

Nick_Lovell

@brianben a lifetime mortgage will provide you the release of funds but you remain 100% owner of the property. You can release up to 55% of your property value. A simple and straight forward process you have to have financial and legal advice. No repayments of course and interest will roll up and compound.

tiredeyes

Looking to change my moms Lifetime equity release mortgage. 
She borrowed 35K 13 years ago, its at 7% for life or care home.
Can she swap it using a equity release council member?
I'm hoping to release another 4K for a walk in shower and stairlift.
House is worth 180K she owes 80K after 13 years.
The house is a perfect two bed 1999 built mid townhouse, in a desirable area.

Nick_Lovell

@tiredeyes - Yes you can re-mortgage this amount to a much lower rate today. Plus it should be no issue to raise the extra capital for the shower - but do check out any local authority grants to see if they can assist of course. You are looking at around 45% loan to value, so you perhaps won't secure the lowest rates as quite a high LTV, but you should improve on the 7%.  Plus the property sounds perfect. So well worth pursuing. If you need any help please message me as be glad to answer any further questions.

tiredeyes

Mom has diabetes so should be able to get vat free stair lift. 

When you say local authority, would that be Dudley Council office ?
Do you know of the best companies to try for the life mortgage ?
TIA

Nick_Lovell

tiredeyes said:

Mom has diabetes so should be able to get vat free stair lift. 

When you say local authority, would that be Dudley Council office ?
Do you know of the best companies to try for the life mortgage ?
TIA

@tiredeyes - Yes speak to Dudley Council and they should be able to advise you if they have any grant funds available for essential needs. I'm not 100% certain on the VAT element but can investigate that.  I've messaged you directly. 

J_e_l_b

Hi everyone, I'm new to this site and I am just starting out on the path of thinking about equity release, I've read lots about it online and I just wondered how do you know who to choose as a provider? There seems so many companies to choose from.

Nick_Lovell

@J_e_l_b I would always recommend you use a provider that is a member of the Equity Release Council. Be wary of 'fee free' advice as this means that they are only looking at one lenders options. It is better to look at a range of lender options through an adviser that works with a panel of lenders. Look for an experienced adviser, who can provide you the advice you need and secure the lowest cost of borrowing. 

J_e_l_b

@Nick_Lovell Thanks for your reply, it seems a bit of a minefield, what would be the first step that I needed to take? I understand that I would be required to take financial advice first, how do I go about finding a financial advisor? Do I contact an equity release company and then they recommend one or do I find my own?

Nick_Lovell

@J_e_l_b If you contact a company that will allocate an adviser - so you do not really have any control over that. I've sent you a link to your messenger for the Equity Release Council so that might help.