Time to take some equity? 22 January at 2:22PM in Over 50s MoneySaving 9 replies 745 views

Sunny_D

I’m nearly 60 with a low life expectancy thanks to cancer and my husband is in his mid-70s. We own a bungalow outright, no point in downsizing; if we live long enough, we will move into a nursing home when necessary. 

We’ve decided we need to enjoy the next 5 years while we still have the energy. So, we need to stop “saving for a rainy day” and start spending. A new motorhome and a smaller car and travel are our priorities now. 

I always thought equity release was a rip-off but we won’t be around to worry about the huge slice of the house that will be swallowed up if we take 80k in equity release. Any better ideas? 

Altior

I will have no dependents, so no concern with leaving anything behind. My pencilled in plan is to sell up and move to a retirement type rental property. I tried to get my mum to do that but she wasn't interested. The key element though is to gain all of the upsides of a rental and have someone else on call, responsible for all repairs and maintenance, servicing etc. There are various shades of that type of property on the market, some with actual warden assist etc so it will depend upon my personal situation when the time arises. 

Part of the strategy would be to fund the rent from income via the realised capital from the sale. Capital that can be easily accessed if needs be, not stuck in an illiquid asset. It definitely shouldn't be the only capital I have to play with. 

I suppose it depends how attached you are to where you live currently in regard to whether that's viable for you.

Albermarle

I always thought equity release was a rip-off 
I am not an expert but I believe the equity release sector is much more tightly controlled than it used to, so you should not get ripped off.
However it is a financial deal, and the provider will be making a profit from it of course.
This article is the MSE info.
How equity release works and risks involved - MSE (moneysavingexpert.com)

missile

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Albermarle

missile said:

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Also apart from being pretty expensive, they must be a bit tricky to park !

missile

Albermarle said:

missile said:

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Also apart from being pretty expensive, they must be a bit tricky to park !

Many people love them, but some have no idea how difficult they can be particularly on narrow roads.

Savvy_Sue

missile said:

Albermarle said:

missile said:

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Also apart from being pretty expensive, they must be a bit tricky to park !

Many people love them, but some have no idea how difficult they can be particularly on narrow roads.

Indeed. I don't mind fresh air and countryside, but I do like a loo I can get in and out of without touching the sides, especially one where I don't have to empty the tank at regular intervals. Likewise, I like being able to walk around three sides of my bed (especially if I have to change the sheets). 

We have done a couple of static caravan holidays, and give me a Premier Inn room every time now ... 

Parking can indeed be a nightmare: they can be too tall for some car parks. And if you have to drive through any urban areas en route to your destination, there may be width restrictions, congestion zones and similar. 

However the OP said 'a new motorhome and a smaller car' so it's possible they are already familiar with the downsides of the motorhome, plus they may intend to tow a small car for running around while 'camped'. 

Another idea - and I'm not saying this is better! - might be an extended break, booking ahead into Premier Inns / Travelodges / B&Bs etc, or picking up bargain rates in posher places. There's a heap of suggestions here: https://www.moneysavingexpert.com/travel/cheap-hotels/

Or a long-term cruise ... 

Albermarle

Another idea - and I'm not saying this is better! - might be an extended break, booking ahead into Premier Inns / Travelodges / B&Bs etc, or picking up bargain rates in posher places.

If you have to stay in a TravelLodge, then make sure it is one of the newer ones and check the Trip Advisor reviews.

Or you could end up here ( ignore the January 5* ones from people with one contribution) and look at November and December.

TRAVELODGE BRACKNELL $31 ($̶5̶6̶) - Updated 2023 Prices & Hotel Reviews - Binfield, England (tripadvisor.com)

tr7phil

missile said:

Albermarle said:

missile said:

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Also apart from being pretty expensive, they must be a bit tricky to park !

Many people love them, but some have no idea how difficult they can be particularly on narrow roads.

My parents had a motorhome from 1981 to 2002, we all loved it but I remember once I was driving along a narrow road with passing places and came upon an oncoming car, a very small car.  The lady in the car made me reverse nearly a mile, how I laughed when I got back to where we'd met to find the passing place just around the bend!

Murphybear

Hmissile said:

Albermarle said:

missile said:

Have you ever holidayed in a motorhome? Freedom of the open road seems like a great idea, but in reality for a couple it is cheaper and more comfortable to stay in a hotel / B&B

Also apart from being pretty expensive, they must be a bit tricky to park !

Many people love them, but some have no idea how difficult they can be particularly on narrow roads.

When we lived in Devon we were happily ambling along one of the tiny rural roads and a large camper van appeared, it was one of those Winnebago types.  It had a few cars behind it as did we as it was near to a National Trust property on a lovely sunny day.   .  It took what seemed forever for us to pass each other.  

Large camper vans and British roads are not usually a good combination.