Lifetime Mortgage

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  • robatwork
    robatwork Posts: 7,087 Forumite
    Name Dropper Photogenic First Post First Anniversary
    These questions—and many others—will be answered in the next episode of...Soap.
  • Onlooker
    Onlooker Posts: 145 Forumite
    One of the best alternatives to getting involved in a lifetime of compounding debt is to downsize to a cheaper property.It is a repeat of our considered opinion usually dismissed as not the best of choices due to the initial costing.Stamp Duty being the biggest amount involved.The charges to be made are not as expensive as they seem.On a property costing £250000 the charge would be £2500 i.e 1%.On £300000 the charge due would be £5000 i.e 1.67% .On £350,000 the charge would be £7,500 i.e 2.14% On £400,000 the charge will be £10,000 i.e 2.5% These are the effective rates that you will pay as part of the downsizing finalising.Consider
  • robatwork
    robatwork Posts: 7,087 Forumite
    Name Dropper Photogenic First Post First Anniversary
    Onlooker wrote: »
    One of the best alternatives to getting involved in a lifetime of compounding debt is to downsize to a cheaper property.It is a repeat of our considered opinion usually dismissed as not the best of choices due to the initial costing.

    Firstly it's not usually dismissed. Downsizing is usually the first suggestion of anyone on here, and any of the experts I hear espouse on the subject online, on radio and on TV.

    Secondly when did this become your considered opinion? Presumably sometime long after you took a loan against your equity?
  • sexymax
    sexymax Posts: 29 Forumite
    First Anniversary First Post
    I am in the process of applying for a lifetime mortgage, however my ex partner (my childrens mother) whats to put a restriction on the title deeds.
    which ensures the property cannot be sold without the ok from my children.
    once this is done she agrees to remove her name from the deeds, allowing me to apply for equity release. any problems ??
  • ACG
    ACG Posts: 23,720 Forumite
    First Anniversary Name Dropper First Post I've helped Parliament
    Yes.
    A lender would not agree to that as your kids could effectively say no to the property being sold indefinitely. As there is a possibility the property could end up having no equity in the property, there would be no incentive for your kids to agree to sell it in that situation as they could theoretically live there rent/mortgage repayments free forever.

    Im not even sure a lender would want the hassle of negotiating an agreement that works for all parties, they could lend that money out to 100 other people instead.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Onlooker
    Onlooker Posts: 145 Forumite
    Having looked again at the 38 pages of discussion and guidence we got from our I.M.A on behalf of one of the leading providers of Lifetime Mortgages we have found the one and only line refering to Downsizing.
    History has told us to not take it into account until many years later was a costly mistake.
    If only we had had a daughter who was a fully trained Independant Financial Advisor as claimed in the Equity Release pages who could have advised us as she did her own father towards Downsizing and as he states he is a happy that he did take her advice and opted not to enter into a Lifetime Mortgage Good for her.Consider .
  • Ibrahimovic786
    Ibrahimovic786 Posts: 28 Forumite
    Hi to all brokers
    I need a mortgage but it's very tricky my situation probs need best broker in uk lol
    Who is up for a challenge?
    Please get In touch
  • Ibrahimovic786
    Ibrahimovic786 Posts: 28 Forumite
    Acg
    could you help me getting a mortgage???
  • Onlooker
    Onlooker Posts: 145 Forumite
    Bank accounts ,car insurance etc.energy costs standard mortgaging all have enticements to switch your provider to probably save monies and even get rewarded to do so.Not so the Lifetime Mortgage industry.Why not?.If for what ever reason you want or have to close your account early a penalty charge of around 25% of the original borrowings will be an addition to your outstanding debt.
    Best advice if you decide to enter is to wait at this time of total uncertaincy.The longer anyone waits in this next year of change could save a lot of monies for a lot of house owners.Consider
  • Onlooker
    Onlooker Posts: 145 Forumite
    The provider who recently passed £3million over to a company as funds to fund the sale of their Equity Release Mortgages is now throwing a further a £4280.00 into the pot to entice the general public to join in a free raffle to watch indoor bowling.10 lucky winners will share the prize whilst they and all the losers will then be met with someone trying to get their £3,004280 back.Consider
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