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  • FIRST POST
    • bouicca21
    • By bouicca21 9th Aug 18, 8:38 PM
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    bouicca21
    Releasing equity?
    • #1
    • 9th Aug 18, 8:38 PM
    Releasing equity? 9th Aug 18 at 8:38 PM
    A friend has a limited income but substantial assets. Currently she is subsidising her lifestyle from capital, but this won't last more than a few years.

    The obvious thing to do is to sell an asset but she is unwilling to do so. No amount of persuasion will shift her on that. She has no close relatives so no incentive to preserve her estate for heirs.

    Is equity release the solution or is there another way to borrow against property for someone who is too old for a conventional mortgage? Does equity release still leave her responsible for maintenance and repairs?

    How much would it cost a woman in early to mid 60s to buy an annuity? Does she need an iFA, in which case how does she find a reputable one?
Page 1
    • AnotherJoe
    • By AnotherJoe 9th Aug 18, 9:59 PM
    • 10,177 Posts
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    AnotherJoe
    • #2
    • 9th Aug 18, 9:59 PM
    • #2
    • 9th Aug 18, 9:59 PM
    An annuity will be awful value unless she is in bad health.
    Won't she be forced to sell these assets (whatvare they? Jewellery? Shares? Paimt8mgs?) when her capital (savings?) runs out?
    As I said on a previous thread, offering advice tends not to work well, if she loses money (or maybe her favourite painting or whatever) she'll likely blame you and if it works well she'll likely say that's what she was going to do anyway or nitpick that she could have done better.
    • masonic
    • By masonic 9th Aug 18, 10:03 PM
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    masonic
    • #3
    • 9th Aug 18, 10:03 PM
    • #3
    • 9th Aug 18, 10:03 PM
    This is the type of situation where an IFA might be able to look at the whole picture in detail and come up with a better solution than you (or a bunch of strangers on the internet) with more limited information. She could find one on https://www.unbiased.co.uk/ or get a personal recommendation from a friend.
    • bouicca21
    • By bouicca21 9th Aug 18, 11:43 PM
    • 3,821 Posts
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    bouicca21
    • #4
    • 9th Aug 18, 11:43 PM
    • #4
    • 9th Aug 18, 11:43 PM
    Thanks. Yes I take the point about getting blamed for advice. I think she might be quite vulnerable to scammers. People assume she's rich because of the assets (property btw) but her income is tiny. I will point her in the direction of an IFA.
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