Equity Release - Good idea? Any Alternatives?

MWT

gwynlas said:

There are a number of 55 and over communities around some are classed as independent living others are supported and service charges vary accordingly.

This is another one of those areas to take great care over as there can be a lot of pitfalls built into the 'service charges' and how they can escalate, as well as the charges for energy which can also be on a group basis without the freedom to pick your own supplier. Add in any limitations or controls on the ability to resell the property, and it can get a little complicated.

On the other-hand they can provide a lot of social activities and local support which can significantly extend the ability to stay in thier own 'home' rather than needing care, but few of them have the ability to handle more specialized later-life needs if the requirement arises...

lisyloo

One downside to these is some older ones are proving difficult to sell as people prefer the newer “Macarthy and stone” types which look attractive.
As a buyer this can be a pro but as a seller you can be stuck with one.

our in-laws found it great initially.
when mobility reduced my MIL found it harder to do the laundry as she had to go up and down several times if the driers were all occupied.
very much pros and cons there.
some are equipped to provide carers or domestic help e.g. cleaning on site if you need them.

gadjo

Interesting discussion. My folks are independent and not mobile restricted... Plus they have numerous grandkids to look after so any kind of home is out of the question!

It's not so much protecting my inheritance, it's about whether ER is a good way for them to get some money. They don't have big pensions, at all, and some money would really help them to enjoy their retirement more. And I agree that £50k isn't alot, my mum's already spent £25k of it!!

MWT

gadjo said:

It's not so much protecting my inheritance, it's about whether ER is a good way for them to get some money.

It is a good way if they don't have any better ways... some of the better ways have been mentioned above, but if they do not have the income to cover a RIO & don't want to down-size, then it is what is left as the next best option...

lisyloo

gadjo said:

Interesting discussion. My folks are independent and not mobile restricted... Plus they have numerous grandkids to look after so any kind of home is out of the question!

It's not so much protecting my inheritance, it's about whether ER is a good way for them to get some money. They don't have big pensions, at all, and some money would really help them to enjoy their retirement more. And I agree that £50k isn't alot, my mum's already spent £25k of it!!

It’s the only option really unless they can move to a cheaper area and retain the same size home. 

gadjo

Ok, thanks everyone.

Thrugelmir

gadjo said:

Interesting discussion. My folks are independent and not mobile restricted... Plus they have numerous grandkids to look after so any kind of home is out of the question!

It's not so much protecting my inheritance, it's about whether ER is a good way for them to get some money. They don't have big pensions, at all, and some money would really help them to enjoy their retirement more. And I agree that £50k isn't alot, my mum's already spent £25k of it!!

We all age with time.  Planning ahead needs to be a core consideration. Health can change extremely rapidly and unexpectedly
.