Equity Release Mortgages
Discussion
Considering my options for the future, as I just turned 60.
I own my home (worth about £250k), have no dependents, and currently live alone. I work part time, run a small business, and am drawing a couple of company pensions. My income, while relatively low, is fine for covering day to day living costs, running 2 cars, the occasional holiday, etc. I have £20k in the bank for emergencies.
Since I have no dependents, my plan for retirement was to take out an equity release mortgage and spend a chunk of it enjoying myself before the local authority takes it all to pay for a care home.
Presumably the amount of money I could take depends on the value of the house and predicted life expectancy? The lender would want to make sure that there was enough money in my estate to repay the loan.
What would happen if, after taking out the mortgage, I either married or lived with someone, particularly if they were 10 years younger than me?
I own my home (worth about £250k), have no dependents, and currently live alone. I work part time, run a small business, and am drawing a couple of company pensions. My income, while relatively low, is fine for covering day to day living costs, running 2 cars, the occasional holiday, etc. I have £20k in the bank for emergencies.
Since I have no dependents, my plan for retirement was to take out an equity release mortgage and spend a chunk of it enjoying myself before the local authority takes it all to pay for a care home.
Presumably the amount of money I could take depends on the value of the house and predicted life expectancy? The lender would want to make sure that there was enough money in my estate to repay the loan.
What would happen if, after taking out the mortgage, I either married or lived with someone, particularly if they were 10 years younger than me?
I found a website that gave some rough figures without having to sign up and get bombarded with sales emails. It looks like it would be a viable option at 65+ - as long as I stay single.
The figures seem to be based on the age of the youngest person who signs up for the mortgage. If I signed up while single, then married a younger woman (who I wanted to stay in the house after I die), how would that get sorted out? Remortgage, life insurance, monthly payments?
Looks like it could get messy.
The figures seem to be based on the age of the youngest person who signs up for the mortgage. If I signed up while single, then married a younger woman (who I wanted to stay in the house after I die), how would that get sorted out? Remortgage, life insurance, monthly payments?
Looks like it could get messy.
I don't think I could handle the insecurity of renting. Imagine potentially having to move house every couple of years as an OAP?
By my reckoning my income when I reach state retirement age will be around £18k (more, if I carry on with my self employment like many in my line do), so more than enough to pay all the bills, just not much left over for holidays and cars.
By my reckoning my income when I reach state retirement age will be around £18k (more, if I carry on with my self employment like many in my line do), so more than enough to pay all the bills, just not much left over for holidays and cars.
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