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Equity Release guide discussion
197 replies
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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 :-)
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
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..
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.
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.