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Equity Release

Hi - I just wondered if anyone had tried Equity Release and if so, what did you think about it. Thanks.


Created By on 15/05/2017

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Wilf
30th Jul 2021 14:26:57
0
Thanks for voting!
We are looking at this and all the major banks seem to be doing it now. Seems to be more regulated than years ago
hillarystrickland
18th Feb 2021 21:35:47
1
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Thank you so much for sharing your story. I do see a lot of downsides and uncertainties about this scheme... However, it's being promoted so much nowadays, that it's hard to understand what could be ideal circumstances for using it. I've found this article on the pitfalls of having an equity released, although the website overall is promoting the scheme... In case it could of any help to anyone, here it is: https://sovereignboss.co.uk/equity-release-pitfalls/
cris1117
30th Jan 2021 11:30:59
2
Thanks for voting!
Hello everyone. I looked at this last year purely as a future option, it worked out very roughly that what ever you borrow you owe double in 18 years.
If you want to leave a legacy to your children its not a great idea, personally I take the view nobody left me anything and I have lived a very happy life.

Probably a bit different for me as my son has a very well paid job and doesn't need my money I have talked it over with him and he's opinion is enjoy your money I don't need it and you can’t take it with you.

As far as being ripped off for interest goes you owe nothing until you die and you are certainly not going to care then.

I would think if you really need the cash then the draw down option is better, you get a maximum limit which you can draw against as and when you need to and you only pay interest on the money you draw.

You could also consider downsizing your home.
hillarystrickland
30th Jan 2021 00:02:34 (Last activity: 30th Jan 2021 09:33:45)
0
Thanks for voting!
I know this thread is a bit aged, but it has some very precious comments on ER. Do you think anything has changed since 2017 and maybe the ER has now become a worthy option? As we're considering taking it now, by head is quite busy researching all of details and gathering as much as I can feedback... Would appreciate to hear your thoughts on it.
Response from Sally - Silversurfer's Editor made on 30th Jan 2021 09:33:45
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nickella
5th Dec 2017 00:51:58 (Last activity: 5th Jan 2018 13:25:30)
1
Thanks for voting!
Hi Jessica, forgot to mention, the interest rates quoted to me were in the vicinity of 2.5% per annum (based on current interest rates which are quite low). This is of course based on a cumulative amount owed. Assuming you took out £50K, then that would equate to £1,025 interest for year 1, increasing.

If you took it out at 70 and lived until 90 then you should still only be paying back less than half of your properties value, assuming it is around the value of mine which is £400K.

You need to check out your needs, what options are available, don't know your age, but factor in your potential life span etc., and take legal advice.
Response from Jessica10 Original Poster made on 5th Jan 2018 13:25:30
Hi Nickella thanks for your comment. I've not been on here for a while so have only just seen it. Will get back to you soon.
nickella
5th Dec 2017 00:44:01
1
Thanks for voting!
I know your post was some time ago, but I have also looked into Equity Release as something to consider in the future, certainly not until I hit at least 70. I got hold of the Readers Digest guide to ER and also checked it out with Which.
If it is done properly, there is a limitation as to the amount you can release from your home, and for myself, I would be looking at draw down not taking the lot, so I can take what I want, when I want up to an agreed limit. You cannot lose your home, and if one of you dies, then the home remains with that person until their death - then the ER company takes their cut out of the sale price of the house. It could mean nothing being left as an inheritance, but as there is only me and my husband, then that is not a problem.
Check everything out properly as you need to know you and your husband will be secure.
[deleted]
16th May 2017 17:41:02 (Last activity: 23rd May 2017 14:59:24)
2
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[deleted]
Response from Jessica10 Original Poster made on 23rd May 2017 14:59:24
And thank you Lionel. It looks like a minefield when you go into it.
Whittler
22nd May 2017 19:39:45 (Last activity: 23rd May 2017 14:57:55)
1
Thanks for voting!
Jessica, my parents went ahead with ER some 15 years ago as it was the hot topic at the time. I can't remember the exact sums however after the death of my mother 2 years ago I looked at the repayments - it was something in the region of having to pay £700 per month in interest, it had spiralled completely out of control and all due to poor advice from an individual they thought they could trust. My father has since sold the house and had to pay a huge sum to the ER company and is now left renting a property with relatively little finance to fall back on. He bitterly regrets ever having taken out ER. My personal view is that ER will soon become the new mis-selling scandal to take over from PPI. Think very carefully before going ahead.
Response from Jessica10 Original Poster made on 23rd May 2017 14:57:55
Thank you too Whittler
ThePrimate
21st May 2017 12:57:01 (Last activity: 23rd May 2017 14:55:34)
0
Thanks for voting!
This recent article is worth a read (it was written regarding the Tory Manifesto but might be relevant to the discussion)
http://evolvepolitics.com/not-content-ruining-peoples-lives-theresa-may-wants-sickeningly-exploit-peoples-deaths-now/
Response from Jessica10 Original Poster made on 23rd May 2017 14:55:34
Thank you Primate, I'll have a look at it.

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