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@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • sircodders
    • By sircodders 7th Apr 18, 7:26 AM
    • 4Posts
    • 0Thanks
    sircodders
    Release of Collateral
    • #1
    • 7th Apr 18, 7:26 AM
    Release of Collateral 7th Apr 18 at 7:26 AM
    Hello

    Myself and my wife are both in our mid 40's and we own our £550,000 property outright.

    Despite being asset rich we are cash poor. Apart from getting a mortgage is there any way of releasing cash from the property?
Page 1
    • ctdctd
    • By ctdctd 7th Apr 18, 8:22 AM
    • 872 Posts
    • 696 Thanks
    ctdctd
    • #2
    • 7th Apr 18, 8:22 AM
    • #2
    • 7th Apr 18, 8:22 AM
    Would rent a room be an option?
    Do Money Saving sites make you buy more bargains - and spend more money?
    • AnotherJoe
    • By AnotherJoe 7th Apr 18, 8:24 AM
    • 8,977 Posts
    • 9,863 Thanks
    AnotherJoe
    • #3
    • 7th Apr 18, 8:24 AM
    • #3
    • 7th Apr 18, 8:24 AM
    Not really. There is equity release, which you've heard of no doubt, but it is really just an (expensive) interest only mortgage under a different name. And in your mid 40's you most likely arent eligible in any case.
    I take it you've ruled out downsizing?
    In any case, either option would likely only be kicking the can down the road, when the money runs out you'll be back at square one, which means looking at the fundamentals of earning more and spending less, for which you have plenty of time.
    • sircodders
    • By sircodders 7th Apr 18, 8:31 AM
    • 4 Posts
    • 0 Thanks
    sircodders
    • #4
    • 7th Apr 18, 8:31 AM
    • #4
    • 7th Apr 18, 8:31 AM
    If we had a spare room it would be an option, but two small children are filling the rooms!

    I did see something about equity release but you have to be over 55 to qualify. We are basically looking for someone to invest in our property, if that makes sense. Apart from a mortgage/loan are there any other options?
    • sircodders
    • By sircodders 7th Apr 18, 8:34 AM
    • 4 Posts
    • 0 Thanks
    sircodders
    • #5
    • 7th Apr 18, 8:34 AM
    • #5
    • 7th Apr 18, 8:34 AM
    AnotherJoe our posts crossed! Thank you.
    • Glen Clark
    • By Glen Clark 7th Apr 18, 9:56 AM
    • 4,109 Posts
    • 3,139 Thanks
    Glen Clark
    • #6
    • 7th Apr 18, 9:56 AM
    • #6
    • 7th Apr 18, 9:56 AM
    We are basically looking for someone to invest in our property, if that makes sense.?
    Originally posted by sircodders
    Frankly, no.
    How long would an investor have to wait for your property?
    Would they have to evict your children?
    What state would it be in then?
    etc
    Not a great investment is it?
    Last edited by Glen Clark; 07-04-2018 at 10:07 AM.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
    • eskbanker
    • By eskbanker 7th Apr 18, 10:19 AM
    • 6,803 Posts
    • 7,052 Thanks
    eskbanker
    • #7
    • 7th Apr 18, 10:19 AM
    • #7
    • 7th Apr 18, 10:19 AM
    We are basically looking for someone to invest in our property, if that makes sense. Apart from a mortgage/loan are there any other options?
    Originally posted by sircodders
    Surely a mortgage is exactly what you're looking for, i.e. someone investing in your property by offering you a repayable loan secured on it? How would you see an alternative form of investment working any differently and/or why do you not see the mortgage as the most appropriate route?
    • Linton
    • By Linton 7th Apr 18, 11:30 AM
    • 9,329 Posts
    • 9,453 Thanks
    Linton
    • #8
    • 7th Apr 18, 11:30 AM
    • #8
    • 7th Apr 18, 11:30 AM
    Why would anyone want to simply invest in your house? They dont know when they may get their investment back. They dont know what the rate of return would be. They do know that they wont get anything until you die or sell the house in possibly 50 years time. It doesnt seem like an enticing investment to me.

    A loan of some form, and the cheapest form is probably a mortgage, is the only way I can see of providing someone with enough protection for their assets to give you the money at a reasonable cost.
    • sircodders
    • By sircodders 8th Apr 18, 7:45 AM
    • 4 Posts
    • 0 Thanks
    sircodders
    • #9
    • 8th Apr 18, 7:45 AM
    • #9
    • 8th Apr 18, 7:45 AM
    Thanks for the all the comments. We've been mortgage free for 15 years now so unless desperate we don't really want to go down that route. I think our only option is to look elsewhere for a cheaper property. Thanks again.
    • Sea Shell
    • By Sea Shell 8th Apr 18, 7:51 AM
    • 667 Posts
    • 876 Thanks
    Sea Shell
    Thanks for the all the comments. We've been mortgage free for 15 years now so unless desperate we don't really want to go down that route. I think our only option is to look elsewhere for a cheaper property. Thanks again.
    Originally posted by sircodders
    But just think of all the extra costs involved in moving, fees, stamp duty etc. Maybe a mortgage IS the most reasonable, and cost effective way of releasing some cash, assuming you can afford the monthly payments and would like to stay in your current house.

    Please don't write it off as a non-starter, just because you like being mortgage-free.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • AnotherJoe
    • By AnotherJoe 8th Apr 18, 8:36 AM
    • 8,977 Posts
    • 9,863 Thanks
    AnotherJoe
    So once you've got a cheaper property, what's the plan? The money you released will be gone eventually, your living costs won't change substantially by downsizing, so as I said earlier you are kicking the can down the road and missing the fundamentals.

    I would also presume your pensions aren't in good shape either if you have no spare cash to get by ?
    • Mojisola
    • By Mojisola 8th Apr 18, 9:51 AM
    • 29,099 Posts
    • 74,389 Thanks
    Mojisola
    Myself and my wife are both in our mid 40's and we own our £550,000 property outright.

    Despite being asset rich we are cash poor. Apart from getting a mortgage is there any way of releasing cash from the property?
    Originally posted by sircodders
    We've been mortgage free for 15 years now so unless desperate we don't really want to go down that route.
    Originally posted by sircodders
    What's the difference between owing a mortgage company some money and someone else owning part of your house that makes a mortgage such a terrible thing to have?
    • Sea Shell
    • By Sea Shell 8th Apr 18, 11:46 AM
    • 667 Posts
    • 876 Thanks
    Sea Shell
    If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.
    " That pound I saved yesterday, is a pound I don't have to earn tomorrow "
    • AnotherJoe
    • By AnotherJoe 8th Apr 18, 12:09 PM
    • 8,977 Posts
    • 9,863 Thanks
    AnotherJoe
    If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.
    Originally posted by Sea Shell
    ..... hence my point about kicking the can down the road.
    • kidmugsy
    • By kidmugsy 8th Apr 18, 12:30 PM
    • 10,347 Posts
    • 7,041 Thanks
    kidmugsy
    Myself and my wife are both in our mid 40's and we own our £550,000 property outright.

    Despite being asset rich we are cash poor. Apart from getting a mortgage is there any way of releasing cash from the property?
    Originally posted by sircodders
    I'll rephrase that. Apart from doing the obvious bleedin' thing is there any way of releasing cash from the property?


    At the moment borrowing is so cheap that you can probably find niche savings accounts that pay a higher interest rate than the mortgage charges.

    A mortgage solves the problem for some years. Long-term you need either to cut your outgoings or increase your incomes. What are your plans on that front?
    Free the dunston one next time too.
    • ProDave
    • By ProDave 8th Apr 18, 12:58 PM
    • 779 Posts
    • 849 Thanks
    ProDave
    If you've been mortgage free for 15 years,. Why no savings pot?? Just a thought.
    Originally posted by Sea Shell
    I was going to ask that.

    Presumably you had a mortgage that you paid off 15 years ago?

    So when that was gone, where did all the (former) mortgage payments go?

    I can only assume either your wages went down, or your spending went up (or a bit of both)

    The only "solution" to this is earn more, or spend less.

    A new mortgage now would only mean spending more each month than you earn, and if you are paying that from the pot sitting there from the mortgage, that will run into trouble in a few years.

    How about relocate to a cheaper area and release money that way (keeping the same size house)
    • thenewcomer
    • By thenewcomer 9th Apr 18, 6:29 AM
    • 82 Posts
    • 15 Thanks
    thenewcomer
    your house is your liability. downsize it.
    • AnotherJoe
    • By AnotherJoe 9th Apr 18, 9:19 AM
    • 8,977 Posts
    • 9,863 Thanks
    AnotherJoe
    your house is your liability. downsize it.
    Originally posted by thenewcomer
    On what basis or evidence do you say that ?
    • LHW99
    • By LHW99 9th Apr 18, 10:19 AM
    • 1,245 Posts
    • 1,139 Thanks
    LHW99
    Do you actually need immediate access to a stash of cash? If not, work on building one up as said above.
    If you do, is that because you have immediate bills to pay? and if that, have a look at the Debt-free wannabe board.
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

3,221Posts Today

6,289Users online

Martin's Twitter
  • I've decided my weekend starts here while the sun's glow is still baskable. So I'm signing off. Have a great weeke? https://t.co/9FxNEpDs6p

  • No not correct. The big six do, but you can get fixed tariffs guaranteed not to rise and about 25% cheaper. Just tr? https://t.co/B2ft5OS3Ig

  • Baaaa! Scottish Power has bleated and followed the herd, today announcing it's putting up energy prices by 5.5%. R? https://t.co/vi3hBxo4Hn

  • Follow Martin