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  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 26th Jun 18, 3:10 PM
    • 88Posts
    • 40Thanks
    MSE Rosie
    Equity Release guide discussion
    • #1
    • 26th Jun 18, 3:10 PM
    Equity Release guide discussion 26th Jun 18 at 3:10 PM

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Page 5
    • ledonster
    • By ledonster 18th Jul 19, 5:49 PM
    • 5 Posts
    • 0 Thanks
    ledonster
    How much has your mum's house gone up in value? Were you not included in the original discussions when she took out the arrangement? Perhaps she was struggling and embarrassed to ask the children for help.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • TELLIT01
    • By TELLIT01 20th Jul 19, 11:12 PM
    • 6,797 Posts
    • 7,454 Thanks
    TELLIT01
    Downsizing isn't always a practical option. In the case of the leaky roof, it would have a serious effect on the value of the property. Quite probably reducing the sale price by more than the cost of repair. A smaller property won't necessarily leave the vendor with much in their pocket after the costs involved with selling and moving are taken into account.
    Our neighbour looked at the possibility of moving from a 3 bed house to a 2 bed bungalow and they would literally have had no equity once essential work had been done on the bungalow to bring it up to modern standards.
    • Bluesdad
    • By Bluesdad 25th Jul 19, 9:45 PM
    • 7 Posts
    • 3 Thanks
    Bluesdad
    The proposal from Mr Corbyn is that everybody will get a lifetime gift allowance of £125,000. Any sum over that would be taxed at 40% so efforts to build up any inheritance for a relative above £125,000 is pretty pointless. In addition if you require to go into care the value of the equity in your house above £23,250 will go to pay for your care. That might be acceptable if you can purchase better quality care than local authority would pay for. In practice you will probably end up paying a much higher fee for the same care than the local authority pays and you will be subsiding individuals who have not been able to save for their care (fair enough) or who have lived extravagant lifestyles and made no attempt to save. (Chavs)

    Equity release that leaves value in my house less than £125,000 and gives me cash to spend as I please rather than handing it over in tax to a government that despises self reliance seems more likely than I ever thought it would be.
    • hj711
    • By hj711 26th Jul 19, 12:41 AM
    • 61 Posts
    • 39 Thanks
    hj711
    The Money Pit
    Downsizing isn't always a practical option. In the case of the leaky roof, it would have a serious effect on the value of the property. Quite probably reducing the sale price by more than the cost of repair. A smaller property won't necessarily leave the vendor with much in their pocket after the costs involved with selling and moving are taken into account.
    Our neighbour looked at the possibility of moving from a 3 bed house to a 2 bed bungalow and they would literally have had no equity once essential work had been done on the bungalow to bring it up to modern standards.
    Originally posted by TELLIT01
    I totally agree.. I bought a house 3 years ago .. big downsize for me to a house that needed substantial repairs.. it was an executor sale. It was a mess and took all my budget and more! Hence I am now in the situation of taking equity release to continue to bring it up to standard and have some money to live on as it has drained me completely. My only other option would have been to downsize again......groan!! Finding a cheaper home, stamp duty and other moving costs and probably needing work again would pose the same situation for me in a couple of years time.

    The regulations of ER mean that you do have to keep the house in good repair but intrinsically that is the same with any mortgage.
    • missile
    • By missile 26th Jul 19, 3:25 AM
    • 10,173 Posts
    • 5,199 Thanks
    missile
    Repairs and alterations always seem to cost more than you think they will.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • TELLIT01
    • By TELLIT01 27th Jul 19, 5:21 PM
    • 6,797 Posts
    • 7,454 Thanks
    TELLIT01
    In theory we would be able to get alterations to a new property done more easily as my sister-in-law is married to a builder. In reality they are so busy they wouldn't be able to do the work!
    • bumblebeebee
    • By bumblebeebee 6th Aug 19, 3:43 PM
    • 1 Posts
    • 0 Thanks
    bumblebeebee
    equity problem
    would equity release companies take on a property which , although we have lived in it since 1990 , have only just managed to register last year with the land registry under a possessory title as we have lost the original deeds.
    Even though we have provided evidence of occupation , original plans for conversion drawn up by me and submitted and passed by local council in 1991:, original sales literature from vendor , solicitors receipts for sale of property , bank statements showing sale , etc ,etc , but not enough to satisfy the land registry.
    After £1400 solicitors fee that's what we end up with, presumably no E R firm would entertain us ?
    • missile
    • By missile 6th Aug 19, 11:14 PM
    • 10,173 Posts
    • 5,199 Thanks
    missile
    I would make an enquiry and ask :-)
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
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