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Equity Release guide discussion

edited 30 November -1 at 12:00AM in Over 50s Money Saving
197 replies 76.5K views
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Replies

  • Is equity release available for buy-to-let flats?

    Does this help?

    w w w. equityreleasescotland. org/plans/equity-release-on-buy-to-let/
    (I am not allowed to post links as a new user so you can copy paste it and remove the gaps to view it)
  • I have been toying with the idea of going down the equity release route as well, as have an interest only mortgage to pay off in 6 years time. Current plan is to set aside my pension lump sum to cover this but searching for any alternatives. I need to decide whether ER is an option or not and completely discount it. The interest payments do look horrendous and I do have dependents who will inherit when my wife & I pop our clogs. Would therefore appreciate a PM for where you have gone to that looks the most reasonable. Any other advice welcome.
  • hj711hj711 Forumite
    64 posts
    Ninth Anniversary Combo Breaker
    alastairs wrote: »
    Does this help?

    w w w. equityreleasescotland. org/plans/equity-release-on-buy-to-let/
    (I am not allowed to post links as a new user so you can copy paste it and remove the gaps to view it)

    Thank you for the link :-)
  • hj711hj711 Forumite
    64 posts
    Ninth Anniversary Combo Breaker
    inghamspur wrote: »
    I have been toying with the idea of going down the equity release route as well, as have an interest only mortgage to pay off in 6 years time. Current plan is to set aside my pension lump sum to cover this but searching for any alternatives. I need to decide whether ER is an option or not and completely discount it. The interest payments do look horrendous and I do have dependents who will inherit when my wife & I pop our clogs. Would therefore appreciate a PM for where you have gone to that looks the most reasonable. Any other advice welcome.

    Hi there.. yes of course, I will send you both advisers details and the companies they use. It is a huge decision to make and one we must not take lightly.. that said and done, I don't have a lot of other options, short of winning the lottery or working full time until I pop my clogs! :-) Both my children have said that me living now and enjoying my life is what is important not them spending my money when I am not here.Without further adieu, I shall pm you now.

    Best regards
  • Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....
  • hj711hj711 Forumite
    64 posts
    Ninth Anniversary Combo Breaker
    Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....

    I will pm you with a contact you could try for general advice.. not allowed to give it here...

    I honestly do not know .. I don't know if anyone else here can offer any solution.. I know from what my 2 advisers have said, the property has to be worth the loan investment from them.. so the fact that you say it was a garage once, may pose problems they are not willing to negotiate.

    Good luck and I am happy for her that you are being a good neighbour and friend to her. Bless her. I hope this can be resolved for her. She should be able to have some help from somewhere.. she could be eligible for Attendance Allowance though.. even if she is not having the actual help, you just have to be able to demonstrate that you have an identifiable need which is presently unmet. I will pm you now with some places to try for advice..
  • thank you so much for your words of encouragement and empathy. I've already acted on some of the comments you've made and will post back on how I get on.
  • Keep_pedallingKeep_pedalling Forumite
    8.8K posts
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....

    I think that she would be better off looking at selling up and moving into sheltered housing / assisted living type accommodation.

    Her current home does not sound suitable for her needs, and is likely to eat money in maintenance.
  • ledonsterledonster Forumite
    11 posts
    Fifth Anniversary 10 Posts
    Browntoa wrote: »
    I did option 1 , downsizing to clear my outstanding mortgage and leave some money .

    I did this prior to retirement and chose somewhere with a small garden and needed minimal work in an attempt to future proof.

    I decided equity release was too expensive an option for me long term


    Great move. Downsizing is usually the cheapest option provided that there is a sufficiently big step down in value. Sadly, we Brits are very attached to our homes and the biggest obstacle tends to be a sense of attachment to our properties. If we can overcome this, downsizing can be the most sensible option.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ledonsterledonster Forumite
    11 posts
    Fifth Anniversary 10 Posts
    How much has your mum's house gone up in value? Were you not included in the original discussions when she took out the arrangement? Perhaps she was struggling and embarrassed to ask the children for help.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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