Equity Release Alternatives?

Linton

westv said:

We ae planning to upsize rather than downsize in a few years or so. Upsize as regards price (for a better location) rather than size. 

Yes we did this with some increase in desirability financed by a 50% lifetime mortgage, so no immediate loss of capital.

lisyloo

Personally I want to move to a better area for us (in our case quieter for dog walking). I expect it to be cheaper because we won't be competing with people who want access to jobs.
So I hope we'll get a more suitable property (for our new lifestyle) and release some cash, but we're not reliant on that for our retirement income.

westv

I've noticed tat the usual equity release calculators (Aviva,LV etc.) have become less useful if you are just looking for a very quick guide. I'm sure the last time I looked (maybe last year) all they required was age, post code and property value. 

Now they ask for email, full address, phone number etc. etc. and even then it's just a range rather than a specific number.

Qyburn

Altior said:

Renting is being 'dismissed' as an option a little too quickly I feel.
.

OP was suggesting selling his house and blowing the entire proceeds on rent, as far as I can tell solely to avoid leaving the house in his estate

"How about selling up at say age 70 (if you get there) and renting until either you need a care home or die beforehand. 
Say £1200 a month rent - £14.4K p.a would last you 20 years. At least this way you are spending your equity rather than gifting it to the Government."

Julezy101

Qyburn said:

Altior said:

Renting is being 'dismissed' as an option a little too quickly I feel.
.

OP was suggesting selling his house and blowing the entire proceeds on rent, as far as I can tell solely to avoid leaving the house in his estate

"How about selling up at say age 70 (if you get there) and renting until either you need a care home or die beforehand. 
Say £1200 a month rent - £14.4K p.a would last you 20 years. At least this way you are spending your equity rather than gifting it to the Government."

'blowing the entire proceeds on rent', hardly, when you put it that way it sounds a gamble in a casino which it clearly isn't. Even if I got only 15 years out of the equity I'd still have SP and work pensions to live off and I'm unlikely to need as much at 85+

Anyway I'm at least 15 years off making a decision on ER or the other options. I am assuming the max I would get from ER at age 70 would be around 50% of the house value - I might even think that's good value if I get to that age. Long term plans are to live outside of the UK so it would depend on the situation in the country I choose the live in. 

Qyburn

Julezy101 said:

'blowing the entire proceeds on rent', hardly, 

The example that you put forward for comment would see you spending 96% of the sale price on rent. So I accept that's not quite "the entire" proceeds, but pretty close.