Equity release question

[DSLiverpool]

Guys I can get 25% out at 59

We want to buy a holiday place abroad

If I change my mind and want to move home do I simply pay off the equity release cash from the sales proceeds?

Do I need a special type of agreement?

Of course I’ll get proper advice but I’m after real PH input please.

[Deesee]

Semi-Permeant move, interest only BTL, covered by the rent.

Also look at a 'mondo' style mortgage for a holiday home.

Also just look at a long term rental where you want to go, cheaper than you think abroad, and just your notice period to serve if you need to move back (kids, grand kids, health etc).

Keep a base UK, perhaps even downsize?

[anonymous-user]

DSLiverpool said:

If I change my mind and want to move home do I simply pay off the equity release cash from the sales proceeds?

I don't know the answer to this, but if it is possible the sum you owe is going to get very large, very quickly. The lowest rates I have seen are 6.2%, so assuming you released £150K the amount you owe would be

5 Years = £184,983.87
10 Years = £228,126.89

[C69]

This article explains how moving house with ER should work (but, as it points out, each provider will probably have a different policy for this): https://www.saga.co.uk/magazine/money/property/equ...

[DSLiverpool]

Cheers - great link. I’m after a lump out regardless as it’s just wasted in the house and I’ll be downsizing 50% within 5 years if I’m still here.

[Wacky Racer]

Dave,

Personally, I would not touch it with a bargepole, loads of horror stories.

The only way it might work is if you were 70 with no kids, lived in a £800,000 house but only had a state pension of £205pw, and wanted to stay in your house and not downsize, (Which is the obvious thing to do).

Don't jump into anything, it could be the biggest mistake of your life.

Also, having a property abroad has it's snags, I had a lovely villa in Mellieha, Malta, but was glad to see the back of it, as it was a constant worry with maintenance, security, and umpteen other things. I should have rented one every time I wanted to go over,

Just my 2p anyway

[DSLiverpool]

Wacky Racer said:

Dave,

Personally, I would not touch it with a bargepole, loads of horror stories.

The only way it might work is if you were 70 with no kids, lived in a £800,000 house but only had a state pension of £205pw, and wanted to stay in your house and not downsize, (Which is the obvious thing to do).

Don't jump into anything, it could be the biggest mistake of your life.

Also, having a property abroad has it's snags, I had a lovely villa in Mellieha, Malta, but was glad to see the back of it, as it was a constant worry with maintenance, security, and umpteen other things. I should have rented one every time I wanted to go over,

Just my 2p anyway

And appreciated - but we don’t want to move. I’ve no one to leave anything to except my wife so if I croak with this house full of equity I’ll be pissed off on my deathbed.

[85Carrera]

Look at the lifetime mortgage mentioned by Twig on the other thread. I’m in a similar position to you and am thinking I may look into one in a few years time.

Oh, and expect Portia5 to turn up and tell you you’re an idiot, too

[Portia5]

85Carrera said:

Look at the lifetime mortgage mentioned by Twig on the other thread. I’m in a similar position to you and am thinking I may look into one in a few years time.

Oh, and expect Portia5 to turn up and tell you you’re an idiot, too

Dave's intending to buy an asset with the cash, not squander it on nonsense.

If a conservative elderly couple went to an advisor/bank/anyone with an ounce of sense and said "Hi. We want a mortgage to spend on a load of jollies and cruises" who do you think he'd refer them to, the lending department or NHS psychological services ?