Equity release recommendation
Discussion
gotoPzero said:
Could you consider downsizing to release the equity?
I think that would be a better route?
We don’t want to move really but I’m thinking that We don’t really want to croak and leave all our pocket money for others to piss up the wall. I think that would be a better route?
Lost a school pal recently and another had a heart attack.
untakenname said:
I would stay away, my Nan used it for £30k and ended up paying back over £100k when she died.
The interest rates were so much above the base rate I'm not sure how it's allowed.
^^^^^ This The interest rates were so much above the base rate I'm not sure how it's allowed.
In laws did this and interest rates were brutal.
As another poster said read the small print, then read it again.
Appreciate there’s some who want to go down this route so I hope you manage to secure a fair deal . Best of luck with it
You certainly need to be extremely careful. The product is pitched as a cool, casual lifestyle option but the reality is that it's a lend of last resort more often than not. And one when the product issuer is getting 100% of the property for 30% of the cost, if that when things go to plan.
The obvious issue is that there aren't exactly a lot of options other than to effectively sell you home for a fraction of its value and then incur a decade or more of the new owner trying to get you to spend the money they've given over to revamp their property and add value for them.
The obvious issue is that there aren't exactly a lot of options other than to effectively sell you home for a fraction of its value and then incur a decade or more of the new owner trying to get you to spend the money they've given over to revamp their property and add value for them.
Taking this all on board - long story short apart from ourselves (wife &I ) we’ve no one to leave the money to and a lot of the total is tied up in the mortgage free house.
I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
DSLiverpool said:
Taking this all on board - long story short apart from ourselves (wife &I ) we’ve no one to leave the money to and a lot of the total is tied up in the mortgage free house.
I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
You can leave the money to me, if that helps? I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
Luke. said:
DSLiverpool said:
Taking this all on board - long story short apart from ourselves (wife &I ) we’ve no one to leave the money to and a lot of the total is tied up in the mortgage free house.
I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
You can leave the money to me, if that helps? I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
DSLiverpool said:
Taking this all on board - long story short apart from ourselves (wife &I ) we’ve no one to leave the money to and a lot of the total is tied up in the mortgage free house.
I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
Not got a mate who wants a nice BTL deal? I’m spinning up another business this year which might take off but that’ll just compound the issue.
I’m starting to think moving might be the best option.
I think I'd rather sell the whole house with a suitable tenancy agreement that allows you to live there for another decade or so and then use the free capital to look for a smaller home for full time retirement, rent it out with the plan of refurbing ahead of when the rental agreement on the original house expires and then move in.
Or find an estate property which you can simply rent and live in until you're carried out in a box or wheeled out dribbling?
The problem with the U.K. is everything is short term. Short term car rental, short term house rentals. But there are properties where you can get rent security and they tend to be rather nice properties on estates.
Ultimately, if there is no one to leave the money to then maybe renting and having 100% of the value of your property as cash might be nicer than renting and getting a few grand which they'll then expect you spend on an extension to add value to their property?
untakenname said:
I would stay away, my Nan used it for £30k and ended up paying back over £100k when she died.
The interest rates were so much above the base rate I'm not sure how it's allowed.
They provide lots of illustrations of what might / could happen and if she had the 30k with interest rolling up for many years then that should not be a surprise. Do you know how long she had the loan outstanding for and what the property value may have done over that time?The interest rates were so much above the base rate I'm not sure how it's allowed.
Some allow you to pay interest only so that the debt remains static, this can work if you have cash flow but lack capital etc. It can also be useful if there is a big inheritance tax liability as tools can then be used or the cash can be given away etc. The key here is good advice and then family communication so that the people inheriting do not feel disgruntled when they see the debt at death.
I’m not concerned about people inheriting, that’s sorted from other funds, however I can’t see the point of doing a Meat Loaf for other people to piss my cash up the wall - I want to piss it up the wall myself.
I’m looking at other houses but DA’s idea of selling it now but staying in it for 10 years sounds interesting - how do you find that service?
I’m looking at other houses but DA’s idea of selling it now but staying in it for 10 years sounds interesting - how do you find that service?
Gassing Station | Finance | Top of Page | What's New | My Stuff