Equity Release

Sallyanne_Richardson

Hi can anyone help?
I have no children to leave my house to but i also dont want to move out of my home.
I am thinking of taking the equity out of my house so i can retire when im 55 any suggestions on this?

kidmugsy

https://www.equity-release-centre.co.uk/equity-release-schemes/drawdown-lifetime-mortgages/

https://www.telegraph.co.uk/personal-banking/mortgages/lifetime-mortgage-retirement-interest-only-right/

https://www.retireeasy.co.uk/news/using-home-fund-retirement-2-2

https://www.readersdigest.co.uk/er1

https://www.wearejust.co.uk/products/equity-release/our-equity-release

(USA) https://retirementresearcher.com/how-did-reverse-mortgages-get-such-a-bad-reputation/

P.S. I have no experience of equity release: these are just some links from my bookmark folder, accumulated in case we ever choose to do it.

Malthusian

At age 55 you would only get a quarter of the value of the house at most, and in exchange the lender would quite probably get the entire value of the house on your death. It would also severely restrict you from moving if the house became unsuitable for your needs; e.g. if you went into care you might have to pay off the loan.

You should take professional advice from an independent financial adviser.

westv

It's something I'd consider but probably not until we are in our 70s minimum.

missile

You may want to consider a life time mortgage?

I read an interesting post from one forum member who has recently arranged this with interest at 3.83% fixed for life. He pays interest only and has option to repay capital.

Anonymous101

What about a sell and rent back scheme?

I'd not heard of this before, as an investor it would be interesting to me so there must be business's out there doing it... If not I might set one up!

Alibert

Equity Release is not equity release at all .. the equity is still all yours to lose .
It's just a loan, secured on your house.

You can only release equity by selling the house and buying smaller one.

xylophone

so i can retire when im 55

Do you have a pension?

Have you checked your state pension situation?

https://www.gov.uk/check-state-pension

jamesd

Sallyanne_Richardson wrote: »

I am thinking of taking the equity out of my house so i can retire when im 55 any suggestions on this?

We really need to know more about your savings, pensions, income and age to give decent guidance on options.

Standard mortgages to age 85 and some older are available and may be a better choice, perhaps replaced by equity release in your 70s or 80s.

MaryLou18

We have been speaking to a company called equityreleased2u and they have been great at telling us the pros and cons. Just trying to make our final decision and what to do next. Has anyone use equity release to release cash out of their home? Thanks

Alibert

the thing is - you are not really releasing the equity out of your home. You can only do that by selling it. you still own all the equity, and if house prices fall, it's you that loses.

It's just a big mortgage... piling up with compound interest,