equity release

wiffel

We are both 69 years old and have no dependents.Our house is valued at 460,000 we dont want to move as we have done alot to the house.We brought it from new and it is very handy for shops,dentist and doctors.We have thought of down sizing but its not what we want.Our question is what do you think about Equatity release for people in our position.We have a private pension but if we go over our allowance then we have to pay income tax.Suggestions!!!!!!

tacpot12

I think equity release could be a good option for you, as you don't want to pay income tax to keep all the public services that you use going! You need to consider that if you want to downsize in future, having taken some equity release could make this more difficult. Also, if you take out too much equity when you don't need it, when you need to take out more, e.g. to pay for a good care home, you might not be able to afford to do so. And if you can't pay for a good care home, the council will put you in a care home that costs them the least money. If it were me, I would pay the tax and safe the equity in my home for later life when care home fees might become a priority.  

knightstyle

Research careful as you may/probably have 30 years of living/surviving in front of you.   So £10,000 a year to spend will be £100k in the first 10 years then inflation will take it to £15k a year and so on.
But if you really have no-one to  leave the money to it should be a good idea.

Silvertabby

Similar situation.  In our case, if one of us needs care then I know that the house can't be touched while the other still lives in it - but the 'free' care will be the cheapest option of a Council home possibly miles away.

That's when we would take out maximum equity release.  To pay for a private care home of our choosing.