Releasing Cash from House

Dundonald321

We are a retired couple, no dependents aged 69 & 70. House value is circa £220k and we are looking for some advice as to release some cash to enjoy during the last few years on this planet. We are not planning on leaving a "big" will to any relatives. Our thoughts are if we can leverage as much as we can (up to 50%?) of our houses' current value, not only will this make us a little more comfortable for several years, it may also reduce the amount that the Local Council will inevitably be able to "grab" from us/potential will grantees, should we end up in the care system in our dotage? Any thoughts folks???   

QrizB

Equity release is often discussed on the "mortgages" board, as it's a type of mortgage.

I'll ask for your post to be moved over there.

Keep_pedalling

In you situation it is rather pointless in worrying about how much of your assets might go on care costs. I would be more worried about having to actually rely on LA funding, if one of you needs residencial care while the other is still living in your home then it will be discounted in any financial assesment it would only be if you both needed it or one of you dies and the other needs care will your home be taken into account, which could mean one of you is dependant on LA funding but the other would be in the fortunate position of being able to self fund.

Having said that with no dependants to pass your estate to it does make sense to get some equity from your home to be able to enjoy yourselves a little more. 

PS I have asked for this thread to be moved to a more appropriate board as it is not related to becoming debt free.

MWT

Dundonald321 said:

We are a retired couple, no dependents aged 69 & 70. House value is circa £220k and we are looking for some advice as to release some cash to enjoy during the last few years on this planet. We are not planning on leaving a "big" will to any relatives. Our thoughts are if we can leverage as much as we can (up to 50%?) of our houses' current value, not only will this make us a little more comfortable for several years, it may also reduce the amount that the Local Council will inevitably be able to "grab" from us/potential will grantees, should we end up in the care system in our dotage? Any thoughts folks???   

Keep in mind that when it comes to care fees, if you want choices you need to be self-funding so you are not avoiding having it 'grabbed' from you, you are choosing to set the quality of care at the lowest level...

... but not everyone will need care of course so it is a decision to make, but do it from the perspective of understanding what you are giving up.

In general, you will struggle to get 50% of the value at the age of your youngest life (69), but around £70-80k or so should be possible.

You will need advice, and do make sure you understand the cost of the advice as it can vary from a few hundred to a few thousand.  

Once you find an advisor they will work through the options and verify that your property is suitable (construction type, adjacencies etc.) then see how much it is possible to take from the equity (assuming you have no mortgage at the moment of course). 

Dundonald321

Many thanks to all of you for your responses thus far.