Equity Release guide discussion

missile

I would suggest you contact a broker. I found Nick Lovell very helpful.

pennypowell

we have contacted several brokers, still trying for us but its not looking good, unfortunately

durrisdemon

With the house owner dying, what happens to the equity release policy amn will anybody else living in the house (a younger relative) be forced to either leave the property or buy it back from the Equity Release company?

Nick_Lovell

durrisdemon said:

With the house owner dying, what happens to the equity release policy amn will anybody else living in the house (a younger relative) be forced to either leave the property or buy it back from the Equity Release company?

The trigger for the repayment is the sole surviving partner passing away. Unfortunately, if a younger relative is there, if over the age of 17 when the policy was taken out, they would have had to sign an occupancy waiver, and would have to vacate the property. There is a maximum period of 12 months to sell the property, so it would not be immediate. They could if they have the income, raise a new mortgage in their own right and discharge the equity release lifetime mortgage. Subject to the Will / inheritance wishes of the owner.

durrisdemon

Thanks. Who has control over the selling process?  The Equity Release company or the residual occupant (they are older than 30)?  I'm thinking about what sale price is acceptable and who decides.

It is likely the Will will pass the house to the younger relative, (though I'm not party to that knowledge)

TELLIT01

Responsibility for sale of the property will presumably remain with the executors of the estate, although the equity release company will have to be kept informed.  You would need to look at the ER contract to confirm that.

Nick_Lovell

durrisdemon said:

Thanks. Who has control over the selling process?  The Equity Release company or the residual occupant (they are older than 30)?  I'm thinking about what sale price is acceptable and who decides.

It is likely the Will will pass the house to the younger relative, (though I'm not party to that knowledge)

The executor of the Will, handles this, not the ER lender. The sale price should be market value or a reasonable offer, this is again handled by the executor / beneficiary. The ER lender will just want their loan balance, remember though interest does still roll up and compound during the sale period, so best to secure a sensible near to market value price to maximise the inheritance from the residual equity.

durrisdemon

Thanks Nick and Tellit, really helpful.

Debtfreeatlast_2

Does anyone know how you can find the best rates, without going through to each broker? I had a call from one and it felt like a bait and switch.  The phone call mentioned a monthly repayment figure, but every subsequent quote is £15-20 more per month to keep the capital loan at the same amount.

Also, keeps pushing to take a higher rate today with a lower redemption cost with the view to redo it in one or two years' time for lower interest, strike me the fees involved would make it would take a long time to see any benefit, apart from to the company doing it.

Any knowledge would be helpful!

Nick_Lovell

Debtfreeatlast_2 said:

Does anyone know how you can find the best rates, without going through to each broker? I had a call from one and it felt like a bait and switch.  The phone call mentioned a monthly repayment figure, but every subsequent quote is £15-20 more per month to keep the capital loan at the same amount.

Also, keeps pushing to take a higher rate today with a lower redemption cost with the view to redo it in one or two years' time for lower interest, strike me the fees involved would make it would take a long time to see any benefit, apart from to the company doing it.

Any knowledge would be helpful!

@Debtfreeatlast_2 The best rate is determined by the age of the youngest borrower and the value of the property, and how much you want to borrow. The role of the adviser is to provide you the lowest cost of borrowing based on your circumstances. No-one should be recommending a rebroke for at least 6 years, or with one product 4 years to minimise the early repayment charges.Rates are currently from late 6% upwards. Happy to help if you need more info.