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  • FIRST POST
    • MSE Rosie
    • By MSE Rosie 26th Jun 18, 4:10 PM
    • 88Posts
    • 40Thanks
    MSE Rosie
    Equity Release guide discussion
    • #1
    • 26th Jun 18, 4:10 PM
    Equity Release guide discussion 26th Jun 18 at 4:10 PM

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Page 5
    • ledonster
    • By ledonster 18th Jul 19, 6:49 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 21st Jul 19, 12:12 AM
    • 7,239 Posts
    • 7,846 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, 10:45 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, 1:41 AM
    • 64 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, 4:25 AM
    • 10,298 Posts
    • 5,317 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, 6:21 PM
    • 7,239 Posts
    • 7,846 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, 4:43 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 7th Aug 19, 12:14 AM
    • 10,298 Posts
    • 5,317 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
    • venison
    • By venison 8th Oct 19, 11:14 PM
    • 3,916 Posts
    • 5,594 Thanks
    venison
    We downsized 8 years ago to a park home, our net savings to date are around £15000 and we are or course mortgage free, its not for everyone but suits others and around 200,000 people UK wide, we also get the benefit of living in a select park in rural derbyshire with no children allowed.
    For the many NOT the few
    • Tigerrod
    • By Tigerrod 30th Oct 19, 3:35 PM
    • 3 Posts
    • 1 Thanks
    Tigerrod
    Drawdown Mortgage - any experience of interest rates on 2nd+ Drawdowns?
    The advantages of a Drawdown Lifetime Mortgage are summarised in the MSE Guide. I would like to know if anyone has any experience of taking a 2nd+ Drawdown from their Reserve. If so, did the interest rate applied seem reasonable compared to the rate set for the initial Drawdown, for the amount being Drawn down, and in the prevailing interest rate climate? I am concerned that an attractive lower rate for the initial Drawdown may be the carrot that pulls the Borrower into an arrangement where the Lender could charge unreasonably higher / extortionate rates for subsequent Drawdowns. Thanks
    • Onlooker
    • By Onlooker 12th Nov 19, 9:05 PM
    • 136 Posts
    • 20 Thanks
    Onlooker
    Equity Release
    The Tonight program on ITV Hub at 7.30 pm Thurs 7/11/19 will give an insight to the financial negative effect that will arise for anyone borrowing monies this way Leaving the risk of owing double or even treble the amount a large debt taken out of your property in your future.
    There are cheaper alternatives and maybe,we hope, better times in the future to get involved in any kind of debt.Consider
    • hj711
    • By hj711 13th Nov 19, 6:44 PM
    • 64 Posts
    • 39 Thanks
    hj711
    An Update to my original post. I took out a lifetime mortgage in October. I was very pleased with the exceptional advice I received from my FA and the fees were only for the legal papers to be drawn up. My FA did not charge a fee, nor did her company or the mortgage lender. I saved £1600 on using this company. It has given me peace of mind and I am sleeping much better too! If you would like more info please pm me and I will advise if able to. I am not able to give you the name of the companies I used here, but suffice it to say for now, that the advice I received was excellent. My children are fine with it too, in fact they are worrying about me less and I can now treat the grandchildren to things which before I would have thought how nice to be able to buy them a toy or an outfit but couldn't .. now I can and that makes me happy! :-) I am being sensible of course but it is a big patch of breathing space! 2 friends have taken it out too and are so pleased also.. again they did it for various reasons.. one to get an extension on her home and another to add to her pension and ease the financial burdens.

    Everyone is going to have their own reasons for considering ER and I would not let the media put you off if it is something that you see as a means of making your life easier. You will be given very clear guidelines into what you borrow and the amounts to be repaid when you die or go into full time permanent care. No stone was left un-turned and every question I had was answered in a concise and easy to understand manner. I felt very confident and still do that I made the right decision for me! Everyone who considers ER must be sure it is for them.. and with the right advice you will be able to make an informed decision.. they are highly regulated now by the Financial Services Commission and the bad press they received years ago when this first began is a thing of the past. Yes in a perfect world I would have preferred not to have done but it is not a lot different to a regular interest only mortgage.. when I stop and think of all the money that my ex spouse and I paid out on the various interest only mortgages over the 38 years it would be far more than this is going to cost me!
    Last edited by hj711; 13-11-2019 at 7:16 PM.
    • hj711
    • By hj711 13th Nov 19, 6:58 PM
    • 64 Posts
    • 39 Thanks
    hj711
    The advantages of a Drawdown Lifetime Mortgage are summarised in the MSE Guide. I would like to know if anyone has any experience of taking a 2nd+ Drawdown from their Reserve. If so, did the interest rate applied seem reasonable compared to the rate set for the initial Drawdown, for the amount being Drawn down, and in the prevailing interest rate climate? I am concerned that an attractive lower rate for the initial Drawdown may be the carrot that pulls the Borrower into an arrangement where the Lender could charge unreasonably higher / extortionate rates for subsequent Drawdowns. Thanks
    Originally posted by Tigerrod
    I took out equity release (lifetime mortgage recently ) as yet I have not spent all that I took initially so have not used the draw drown facility .. but it will depend on what the interest rate is at the time of course when I do. A friend of mine took out ER 2 years ago and she said the interest rate was lower this year at less than 3% .. whereas when she took her ER out it was much higher.. so for her it was a good thing. You do have to keep an eye on the interest rates and it is a gamble but if they have been at 2.60% for 3 months let's say, it is unlikely they will go down any lower but of course could suddenly shoot up.. if they are low now then strike whilst the iron is hot.
    • hj711
    • By hj711 13th Nov 19, 7:19 PM
    • 64 Posts
    • 39 Thanks
    hj711
    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 ?
    Originally posted by bumblebeebee
    Hi I don't know if you managed to find out anything .. ? I would not have thought ER would have had a problem with it personally ... as long as the property is registered and is not a park home or retirement place, they will lend on most as far as I know.
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