Equity Release
Discussion
Tonker
Got to the point where we dont fancy doing any more decorating
so it would cover
complete repaint inside
new carpet
new 3pc suite..when dog dies as he has buggered this one!
Might add funeral plan
possibly renew shed door and window
looking at 15k tops
sons says 0% finance cards but that would stretch it out years!!
Got to the point where we dont fancy doing any more decorating
so it would cover
complete repaint inside
new carpet
new 3pc suite..when dog dies as he has buggered this one!
Might add funeral plan
possibly renew shed door and window
looking at 15k tops
sons says 0% finance cards but that would stretch it out years!!
So what is the answer if you’ve got no kids, and you’re the youngest of your relations, and therefore you’re unlikely to have anyone to leave money and/or property to?
That’s the position Mrs Oxgreen and I are in. Sure, we’ll leave a bit to chariddy and some to friends, but the entire value of our house is a bit excessive. Essentially we’d like to find a way of spending almost every last penny before we die (including the value of our house), without the risk of running out.
I’ve looked at equity release, but it does look a bit rubbish. And the percentage of house value is a bit small, especially when you’re relatively young.
I was hoping there’d be some kind of product where you swap your house for an annuity-like arrangement, but stay living in the house until you’re either both dead or both in permanent care.
That’s the position Mrs Oxgreen and I are in. Sure, we’ll leave a bit to chariddy and some to friends, but the entire value of our house is a bit excessive. Essentially we’d like to find a way of spending almost every last penny before we die (including the value of our house), without the risk of running out.
I’ve looked at equity release, but it does look a bit rubbish. And the percentage of house value is a bit small, especially when you’re relatively young.
I was hoping there’d be some kind of product where you swap your house for an annuity-like arrangement, but stay living in the house until you’re either both dead or both in permanent care.
Dr Mike Oxgreen said:
So what is the answer if you’ve got no kids, and you’re the youngest of your relations, and therefore you’re unlikely to have anyone to leave money and/or property to?
That’s the position Mrs Oxgreen and I are in. Sure, we’ll leave a bit to chariddy and some to friends, but the entire value of our house is a bit excessive. Essentially we’d like to find a way of spending almost every last penny before we die (including the value of our house), without the risk of running out.
I’ve looked at equity release, but it does look a bit rubbish. And the percentage of house value is a bit small, especially when you’re relatively young.
Which means that the expected date of repayment is potentially far into the future and could exceed the value of the house if property prices don’t increase as much as expected.That’s the position Mrs Oxgreen and I are in. Sure, we’ll leave a bit to chariddy and some to friends, but the entire value of our house is a bit excessive. Essentially we’d like to find a way of spending almost every last penny before we die (including the value of our house), without the risk of running out.
I’ve looked at equity release, but it does look a bit rubbish. And the percentage of house value is a bit small, especially when you’re relatively young.
Dr Mike Oxgreen said:
I was hoping there’d be some kind of product where you swap your house for an annuity-like arrangement, but stay living in the house until you’re either both dead or both in permanent care.
That would be a massive gamble on house price inflation, longevity and morbidity.silverfoxcc said:
Tonker
Got to the point where we dont fancy doing any more decorating
so it would cover
complete repaint inside
new carpet
new 3pc suite..when dog dies as he has buggered this one!
Might add funeral plan
possibly renew shed door and window
looking at 15k tops
sons says 0% finance cards but that would stretch it out years!!
New shed door and window! Is this a wind up?
Got to the point where we dont fancy doing any more decorating
so it would cover
complete repaint inside
new carpet
new 3pc suite..when dog dies as he has buggered this one!
Might add funeral plan
possibly renew shed door and window
looking at 15k tops
sons says 0% finance cards but that would stretch it out years!!
New shed door and window! Is this a wind up?
sidicks said:
Dr Mike Oxgreen said:
I was hoping there’d be some kind of product where you swap your house for an annuity-like arrangement, but stay living in the house until you’re either both dead or both in permanent care.
That would be a massive gamble on house price inflation, longevity and morbidity.So is there an answer to my question - what methodologies and/or financial products are there that allow you to die without leaving huge amounts of money and/or property when you have nobody to leave it to?
98elise said:
Why not remortgage?
Or set up a home equity line of credit, that gives much more flexibility with minimal costs.Mine is currently untapped, should I draw I will pay a monthly int only payment of 3.75%pa.
So lets say I want 100K, I can draw 120K and use the 20 for making the approx 400 int payment
Giving me about 4 years use of the 100K.
I've averaged 7.6% in the market over the past 10 years, so it's workable. It would of course need to be settled should I wish to move house.
I don't do this, or need to.
Anybody using equity release or reverse mortgages should be aware that moving house is possible but incredibly financially inefficient as you have paid a lot of fees upfront.
By comparison my bank renewed my LOC in January no fees and gave me a $250 visa gift card. (TD Bank)
If I needed something like this in UK I would try Metro Bank.
Dr Mike Oxgreen said:
Yep. A gamble for the annuity provider, that is. But isn’t that the whole nature of the annuity game?
No, a large population of homogeneous lives such as a large annuity portfolio has a relatively stable predictable cash flow profile.The scenario that you are describing is very different.
Dr Mike Oxygen said:
So is there an answer to my question - what methodologies and/or financial products are there that allow you to die without leaving huge amounts of money and/or property when you have nobody to leave it to?
Equity release is probably the closest thing to what you are after.Dr Mike Oxgreen said:
Yep. A gamble for the annuity provider, that is. But isn’t that the whole nature of the annuity game?
So is there an answer to my question - what methodologies and/or financial products are there that allow you to die without leaving huge amounts of money and/or property when you have nobody to leave it to?
Coke, (viagra) and hookers is the traditional answerSo is there an answer to my question - what methodologies and/or financial products are there that allow you to die without leaving huge amounts of money and/or property when you have nobody to leave it to?
sidicks said:
Dr Mike Oxgreen said:
Yep. A gamble for the annuity provider, that is. But isn’t that the whole nature of the annuity game?
No, a large population of homogeneous lives such as a large annuity portfolio has a relatively stable predictable cash flow profile.Whilst a large homogenous population will result in relatively predictable death rates, it won't have an impact on whether or not future longevity assumption changes occur which is what will adversely affect the insurer.
CarlosFandango11 said:
Writing annuities causes insurers to take on significant longevity risk.
Whilst a large homogenous population will result in relatively predictable death rates, it won't have an impact on whether or not future longevity assumption changes occur which is what will adversely affect the insurer.
And much of the longevity risk is reinsured anyway!Whilst a large homogenous population will result in relatively predictable death rates, it won't have an impact on whether or not future longevity assumption changes occur which is what will adversely affect the insurer.
Speak to a specialist, independent equity release broker. I run one so have an iron in the fire.
Some people confuse equity release mortgages with home reversion plans (those are the ones where you sell your whole house for considerably below market value and live in it under a lease). Home reversion is a tiny % of the market.
For many people their only remaining asset of value is their property. If they don't have the income or other assets to do the things they want, why shouldn't they be able to use the equity in their property?
Those who are concerned by or don't understand the products ought to Google the Equity Release Council and take a look.
Some people confuse equity release mortgages with home reversion plans (those are the ones where you sell your whole house for considerably below market value and live in it under a lease). Home reversion is a tiny % of the market.
For many people their only remaining asset of value is their property. If they don't have the income or other assets to do the things they want, why shouldn't they be able to use the equity in their property?
Those who are concerned by or don't understand the products ought to Google the Equity Release Council and take a look.
Thread resurrection!
My father wanted to do take equity release, but was turned down by a couple companies. He is 89 and my mother, who is in a care home with dementia, is 85. Both are on the title deeds of the house.
Even though I have power of attorney, they are not interested because she is in a care home.
He doesn’t want to take a lot of money out. Their house is worth about £700k, which they own outright, and he was thinking of getting £50-60k, so less than 10% of the value of the house.
I don’t really understand why he has been turned down. Surely, he is entitled to spend some of the money from his share of the house in any way he chooses?
Are there any other alternatives?
Thanks
My father wanted to do take equity release, but was turned down by a couple companies. He is 89 and my mother, who is in a care home with dementia, is 85. Both are on the title deeds of the house.
Even though I have power of attorney, they are not interested because she is in a care home.
He doesn’t want to take a lot of money out. Their house is worth about £700k, which they own outright, and he was thinking of getting £50-60k, so less than 10% of the value of the house.
I don’t really understand why he has been turned down. Surely, he is entitled to spend some of the money from his share of the house in any way he chooses?
Are there any other alternatives?
Thanks
Grandad Gaz said:
Thread resurrection!
My father wanted to do take equity release, but was turned down by a couple companies. He is 89 and my mother, who is in a care home with dementia, is 85. Both are on the title deeds of the house.
Even though I have power of attorney, they are not interested because she is in a care home.
He doesn’t want to take a lot of money out. Their house is worth about £700k, which they own outright, and he was thinking of getting £50-60k, so less than 10% of the value of the house.
I don’t really understand why he has been turned down. Surely, he is entitled to spend some of the money from his share of the house in any way he chooses?
Are there any other alternatives?
Can you loan it to them? Maybe remortgage & have a loan agreement drawn up so you get repaid when the last of them dies.My father wanted to do take equity release, but was turned down by a couple companies. He is 89 and my mother, who is in a care home with dementia, is 85. Both are on the title deeds of the house.
Even though I have power of attorney, they are not interested because she is in a care home.
He doesn’t want to take a lot of money out. Their house is worth about £700k, which they own outright, and he was thinking of getting £50-60k, so less than 10% of the value of the house.
I don’t really understand why he has been turned down. Surely, he is entitled to spend some of the money from his share of the house in any way he chooses?
Are there any other alternatives?
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