Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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

    Click reply below to discuss. If you havenít already,

    join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.

    Follow MSE on other Social Media:
    MSE Facebook, MSE Twitter, MSE Deals Facebook, MSE Deals Twitter, Forum Twitter, Instagram, Pinterest
    Join the MSE Forum
    Get the Free MoneySavingExpert Money Tips E-mail
    Report inappropriate posts: click the report button
    Flag a news story: news@moneysavingexpert.com
Page 4
    • hj711
    • By hj711 12th Jul 19, 7:40 PM
    • 61 Posts
    • 39 Thanks
    hj711
    Equity Release = having a life before it is too late!
    Hopefully we would be able to get by on our pensions, but who wants to 'get by' for the next umpteen years? Releasing equity would enable us to continue having decent holidays, replace the car as and when it's necessary, etc.
    Originally posted by TELLIT01
    I know and this is what is going on in my head space when I think of doing it.. I have sat on the fence for a fair while about this.. 3 friends have done it and are glad they did.. one had an extension on her home, the other just has more money to live on instead of counting the pennies every month and wondering how she was going to manage.. losing sleep etc..and the other did it to have more money for nice holidays and helping out her single parent daughter..

    If I do this too, I can have a holiday, change my car (11 years old now..) and help my family out or treat them to something now and again.

    I have been talking to various friends about it as I am the only decision maker and they were all worried to begin with but now they too are coming around to the idea.. what is the point in sitting on money.. it is only a mortgage in reality and if you do not pay your monthly fees on a mortgage you could be repossessed.. whereas with this you can't be.. so there is an element of it being a safer option in that sense. You can repay up to a certain amount every year or pay your interest if you want to... one of my friends has done that with her private pension, although not a huge amount, she uses it to pay her yearly interest on her loan. In my previous home I was paying a huge mortgage for 10 years and it was interest only.. the cost of that was phenomenal and then you still have to pay the loan amount off when your mortgage reaches maturity or if you sell.... people forget that. I think it is because ER has had such bad press in the past, but now it is so heavily regulated, it is much more solid a foundation to consider.
    • missile
    • By missile 14th Jul 19, 4:23 PM
    • 10,215 Posts
    • 5,248 Thanks
    missile
    I am thinking this is a good option for us too. Need to do some research to decide which option and with which provider is best.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • hj711
    • By hj711 14th Jul 19, 5:17 PM
    • 61 Posts
    • 39 Thanks
    hj711
    Equity Release = having a life before it is too late!
    I am thinking this is a good option for us too. Need to do some research to decide which option and with which provider is best.
    Originally posted by missile
    I have been researching this option for over a year now. 2 friends and a neighbour have done it.. and are happy that they did. I have had details from a couple of companies.. so far the one that is giving the best start up costs and the one that I get the best overall impression with is one company with whom I had a meeting with an IFA with last week. She does not charge a fee.. she gets her commission from the company she is dealing with (large well known in wealth management) and the overall cost to me will be around £800 for the solicitor and then whatever the arrangement fee is for the company, which you would pay an arrangement fee if you were setting up any kind of mortgage..and the property valuation fee. But the other company I had an appt with.. the start up costs were working out at well over £2.5k.. because the IFA wanted £1100 plus VAT. The solicitors he uses were slightly cheaper than the last one by about £150 .. but something that is worth noting for you, if you use their solicitors they put you in touch with, it is preferential to your own as they will charge you if you did not go ahead with the plan.. whereas the equity release specialist legal bods don't. So it may be a bit cheaper with your personal ones but only if you go full steam ahead! Worth ringing around though to see what they will and won't do for you. They do advise you to have a word with your own personal solicitor if you have one anyway.

    You will also need an up to date will and they recommend you set up a Lasting Power of Attorney if you have not got one ..and severely not single .. so that if you have 2 nominees .. ie a son and daughter for example, both do not have to sign for things.. although the house cannot be sold by one of them, that has to be both.

    I would avoid certain companies just due to the upfront costs. I am happy to share the one I have used recently if you want to try them.. dependent on where you live of course.. but they are a nationwide company so I am sure they will have someone else to come and see you. I am not rushing into this.. it is far too important to go gung ho into and they respect that.. anyone who pressurises you, is not worth bothering with. So send me a private message if you want the info,.

    I have friends who have an interest only mortgage which will need paying off in 5 years and they dearly want to stay where they are.. so they are thinking about taking it out too to repay their mortgage so that they can stay put.

    Good luck! :-)
    • missile
    • By missile 14th Jul 19, 6:38 PM
    • 10,215 Posts
    • 5,248 Thanks
    missile
    Your IFA seems to be making it unnecessarily complicated. I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?

    There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.

    It appears you have PM turned off?
    Last edited by missile; 14-07-2019 at 6:43 PM.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • hj711
    • By hj711 14th Jul 19, 6:45 PM
    • 61 Posts
    • 39 Thanks
    hj711
    I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?


    There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.
    Originally posted by missile
    Both the ones I have seen have been very well recommended by people I know well.. so I will stick with them and ultimately one of them.. they will then look for the best options for me.. but yes you have to go with your gut instinct too... and if IFA's are not your thing.. then do it another way.. I did find a really helpful neutral help guide last year.. if I can find it again, I will send it to you.. I can't remortgage as my income is not enough to go down that route... I am mortgage free at the moment and so the thought of having another debt hanging over my head was why I have not made a decision about this yet! I am mulling it over and looking at all options/angles. My kids are not looking at me to be a meal ticket.. they want me to live my life and enjoy it so really there is nothing stopping me except some little niggle about not wanting to owe anyone anything!
    • hj711
    • By hj711 14th Jul 19, 6:46 PM
    • 61 Posts
    • 39 Thanks
    hj711
    Your IFA seems to be making it unnecessarily complicated. I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?

    There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.

    It appears you have PM turned off?
    Originally posted by missile
    Ah okay thanks.. not sure how I turn it on .. but I will go and find out. Sorry about that.
    • hj711
    • By hj711 14th Jul 19, 6:50 PM
    • 61 Posts
    • 39 Thanks
    hj711
    Your IFA seems to be making it unnecessarily complicated. I don't trust IFAs, crooks in suits my wife calls them. You might be cheaper / better going to a mortgage advisor?

    There are quite a few options to consider, I am leaning toward a simple re-mortgage for a fixed term at a fixed rate.

    It appears you have PM turned off?
    Originally posted by missile
    Sorted out the PM.. :-)
    • Keep pedalling
    • By Keep pedalling 14th Jul 19, 9:07 PM
    • 6,900 Posts
    • 8,097 Thanks
    Keep pedalling
    Both the ones I have seen have been very well recommended by people I know well.. so I will stick with them and ultimately one of them.. they will then look for the best options for me.. but yes you have to go with your gut instinct too... and if IFA's are not your thing.. then do it another way.. I did find a really helpful neutral help guide last year.. if I can find it again, I will send it to you.. I can't remortgage as my income is not enough to go down that route... I am mortgage free at the moment and so the thought of having another debt hanging over my head was why I have not made a decision about this yet! I am mulling it over and looking at all options/angles. My kids are not looking at me to be a meal ticket.. they want me to live my life and enjoy it so really there is nothing stopping me except some little niggle about not wanting to owe anyone anything!
    Originally posted by hj711
    As you have mentioned an IFA earning commission then you are not talking to an IFA, as they have not been allowed to be commission based since 2012.
    • hj711
    • By hj711 14th Jul 19, 11:32 PM
    • 61 Posts
    • 39 Thanks
    hj711
    As you have mentioned an IFA earning commission then you are not talking to an IFA, as they have not been allowed to be commission based since 2012.
    Originally posted by Keep pedalling
    Well I am calling them IFA's.. maybe that is not what they are called.. to me that is what they are in rough terminology. :-) There is probably another title for them. I don't have their business cards to hand to double check. I use the term 'commission' loosely.. this may just be the fee they would get per se.. both are self employed but work for specific equity release specialist brokers who then contract other large companies in the field.... both these brokers are well known in these aspects. I have done some homework.. but anyway thanks for highlighting that and at least if I don't know what their actual title is, I will refrain from calling them IFA's.. :-)
    • TELLIT01
    • By TELLIT01 15th Jul 19, 4:48 PM
    • 6,929 Posts
    • 7,587 Thanks
    TELLIT01
    Just leave the 'I' off 'IFA' and play safe.
    • missile
    • By missile 15th Jul 19, 8:07 PM
    • 10,215 Posts
    • 5,248 Thanks
    missile
    Sorted out the PM.. :-)
    Originally posted by hj711
    I sent you a PM
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • alastairs
    • By alastairs 16th Jul 19, 9:35 AM
    • 2 Posts
    • 1 Thanks
    alastairs
    Buy-to-let ER
    Is equity release available for buy-to-let flats?
    Originally posted by thegreybeard
    Does this help?

    w w w. equityreleasescotland. org/plans/equity-release-on-buy-to-let/
    (I am not allowed to post links as a new user so you can copy paste it and remove the gaps to view it)
    • inghamspur
    • By inghamspur 16th Jul 19, 2:15 PM
    • 1 Posts
    • 1 Thanks
    inghamspur
    PM me please with provider details
    I have been toying with the idea of going down the equity release route as well, as have an interest only mortgage to pay off in 6 years time. Current plan is to set aside my pension lump sum to cover this but searching for any alternatives. I need to decide whether ER is an option or not and completely discount it. The interest payments do look horrendous and I do have dependents who will inherit when my wife & I pop our clogs. Would therefore appreciate a PM for where you have gone to that looks the most reasonable. Any other advice welcome.
    • hj711
    • By hj711 16th Jul 19, 3:50 PM
    • 61 Posts
    • 39 Thanks
    hj711
    To ER or not .. that is the (burning) question? :-)
    Does this help?

    w w w. equityreleasescotland. org/plans/equity-release-on-buy-to-let/
    (I am not allowed to post links as a new user so you can copy paste it and remove the gaps to view it)
    Originally posted by alastairs
    Thank you for the link :-)
    • hj711
    • By hj711 16th Jul 19, 3:54 PM
    • 61 Posts
    • 39 Thanks
    hj711
    PPI question reply
    I have been toying with the idea of going down the equity release route as well, as have an interest only mortgage to pay off in 6 years time. Current plan is to set aside my pension lump sum to cover this but searching for any alternatives. I need to decide whether ER is an option or not and completely discount it. The interest payments do look horrendous and I do have dependents who will inherit when my wife & I pop our clogs. Would therefore appreciate a PM for where you have gone to that looks the most reasonable. Any other advice welcome.
    Originally posted by inghamspur
    Hi there.. yes of course, I will send you both advisers details and the companies they use. It is a huge decision to make and one we must not take lightly.. that said and done, I don't have a lot of other options, short of winning the lottery or working full time until I pop my clogs! :-) Both my children have said that me living now and enjoying my life is what is important not them spending my money when I am not here.Without further adieu, I shall pm you now.

    Best regards
    • bobneedshelp
    • By bobneedshelp 16th Jul 19, 4:17 PM
    • 2 Posts
    • 2 Thanks
    bobneedshelp
    Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....
    • hj711
    • By hj711 16th Jul 19, 5:22 PM
    • 61 Posts
    • 39 Thanks
    hj711
    Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....
    Originally posted by bobneedshelp
    I will pm you with a contact you could try for general advice.. not allowed to give it here...

    I honestly do not know .. I don't know if anyone else here can offer any solution.. I know from what my 2 advisers have said, the property has to be worth the loan investment from them.. so the fact that you say it was a garage once, may pose problems they are not willing to negotiate.

    Good luck and I am happy for her that you are being a good neighbour and friend to her. Bless her. I hope this can be resolved for her. She should be able to have some help from somewhere.. she could be eligible for Attendance Allowance though.. even if she is not having the actual help, you just have to be able to demonstrate that you have an identifiable need which is presently unmet. I will pm you now with some places to try for advice..
    • bobneedshelp
    • By bobneedshelp 16th Jul 19, 7:28 PM
    • 2 Posts
    • 2 Thanks
    bobneedshelp
    thank you so much for your words of encouragement and empathy. I've already acted on some of the comments you've made and will post back on how I get on.
    • Keep pedalling
    • By Keep pedalling 17th Jul 19, 7:35 AM
    • 6,900 Posts
    • 8,097 Thanks
    Keep pedalling
    Hi all, I've read much of this debate but can't find a specific answer so I'd welcome your thoughts.

    My 87 year old neighbour gets pension support and lives very frugally. She is becoming ever more forgetful and would benefit from a little more help with day to day living. In addition the house generally hasn't been maintained much and the boiler is a little old, carpets could use a refresh etc....
    We've looked into equity release but the company found excuses not to grant it (it's a victorian 'garage' modernised 30 years ago by a DIY enthusiast - its sound but not up to modern standards). The plot alone would be worth around £150,000 and the property comfortably twice that in it's present condition.
    The roof was leaking so we discovered a county council equity release scheme that has covered the cost of repair (£15,000) at a very good rate but it can only be used to bring the accommodation up to standard (ie fix the roof - nothing else).
    The neighbour isn't concerned about inheritance. She has some 2nd generation relatives but they are OK. She would welcome more 'cash' which would make the rest of her life much easier.
    How can we release some of the equity in the property so that she can make life a little easier for herself? The ideal scheme would offer a small lump sum (say £25,000) and maybe an annuity or a larger limp sum which she could invest and use the interest to pay for a helper. We have enquired about 'assistance allowance' but she doesn't seem to qualify and she doesn't want to make a fuss....
    Originally posted by bobneedshelp
    I think that she would be better off looking at selling up and moving into sheltered housing / assisted living type accommodation.

    Her current home does not sound suitable for her needs, and is likely to eat money in maintenance.
    • ledonster
    • By ledonster 18th Jul 19, 5:45 PM
    • 5 Posts
    • 0 Thanks
    ledonster
    good move
    I did option 1 , downsizing to clear my outstanding mortgage and leave some money .

    I did this prior to retirement and chose somewhere with a small garden and needed minimal work in an attempt to future proof.

    I decided equity release was too expensive an option for me long term
    Originally posted by Browntoa

    Great move. Downsizing is usually the cheapest option provided that there is a sufficiently big step down in value. Sadly, we Brits are very attached to our homes and the biggest obstacle tends to be a sense of attachment to our properties. If we can overcome this, downsizing can be the most sensible option.
    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.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,176Posts Today

5,896Users online

Martin's Twitter