is equity release the only / best option?
WendyS_3
Posts: 2 Newbie
My parents are retired, no mortgage, house value approx £140,000
They are having to be very careful moneywise, but the car needs replacing etc blah blah... Im sure you know the story.
The fact is, Id rather they live happily now, than leave me and my sister anything . My father thinks equity release is a rip off and would rather struggle. Id rather he release £30k or so, and enjoy the rest of his life.
Is equity release the best path here? Are there any other options?
I dont want to convince him to do something if its not the best option???
Many thanks to whoever answers!
They are having to be very careful moneywise, but the car needs replacing etc blah blah... Im sure you know the story.
The fact is, Id rather they live happily now, than leave me and my sister anything . My father thinks equity release is a rip off and would rather struggle. Id rather he release £30k or so, and enjoy the rest of his life.
Is equity release the best path here? Are there any other options?
I dont want to convince him to do something if its not the best option???
Many thanks to whoever answers!
0
Comments
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Hi Wendy,
My parents were in a similar situation 2 years ago.
We looked at equity release and decided it was a rip-off.
My parents instead decided to downsize to a small 2 bed flat in a sheltered block. It was a total success. They have very little cleaning to do and no garden maintenance or building maintenance (which they were struggling with). They also have a lot of company with bingo and coffee mornings.
I'm not sure whether this would suit your parents but it suited ours down to the ground.
We initially didn't think they would release much equity by moving. But they sold at £135K and bought at £95K, releasing £36K after costs.
I would certainly suggest looking at this because the costs are very low, so they get the vast majority of the benefit straight in their pockets.
Also have they looked at claiming the pension credit?
Are there any benefits they might get?
If they might get benefits then downsizing might be a BAD thing to do as it'll give them lots of cash.
Hope that helps0 -
Thanks for that Lisyloo
I dont know about pension credit, I will ask.
They dont want to downsize as they love the area, they've been there for 40 years, and all their friends are there. I love it cos their neighbours are fantastic and it gives me peace of mind. To downsize they'd need to move further away.
Also theyre still VERY independant and are against anything that suggests theyre getting old!!0
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