ChatterBank3 mins ago
equity release
7 Answers
can any one give information on equity release i have been on various sites to get some information on how much i can release etc fill in the calculator and then get a message back saying a financial advisor will be in touch i really dont want this pressure at this moment just some figures and how much i can release and what it will cost i am 67 and my property is valued at £350,000 any help would be welcomed as i am only thinking about it at this stage and i dont want any hard sell
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Go and get proper independant financial advice. Avoid agents who are tied to any particular schemes (ie only push their own products) - find someone who can advise on all schemes out there.
You could try companies such as Saga or Age Concern, see if they have any advice on these schemes, definitely not something to be undertaken lightly and without being properly (and independently) advised as to the full ramifications.
Seriously consider paying for proper advice.
You could try companies such as Saga or Age Concern, see if they have any advice on these schemes, definitely not something to be undertaken lightly and without being properly (and independently) advised as to the full ramifications.
Seriously consider paying for proper advice.
The maximum amount available differs between schemes, The website of Age UK (formerly Age Concern) includes a reference to 40% of a property's value, as an example. It also says this:
"The older you are, the larger the amount of money you are likely to receive from a scheme. This is because your life expectancy is lower. Men receive more than women of the same age because their life expectancy is lower."
This might help:
http://www.ageuk.org....010_fcs.pdf?dtrk=true
Chris
"The older you are, the larger the amount of money you are likely to receive from a scheme. This is because your life expectancy is lower. Men receive more than women of the same age because their life expectancy is lower."
This might help:
http://www.ageuk.org....010_fcs.pdf?dtrk=true
Chris
Try http://www.ship-ltd.org/ this is the regulatory body for equity release schemes.
There are 2 types, one where you borrow a percentage of the value, actually receiving a lower amount depending on age then they take that percentage when the house is sold. The second where you have a mortgage accruing interest, never make a repayment and again it is paid off when the house is sold.
There are 2 types, one where you borrow a percentage of the value, actually receiving a lower amount depending on age then they take that percentage when the house is sold. The second where you have a mortgage accruing interest, never make a repayment and again it is paid off when the house is sold.
Age Partnership sounds a bit like Age UK. Beware, it is a hard sell operation.
There are different types of ER. One type is lifetime mortgage...you borrow against your property and when you pop off the loan plus interest is paid from the sale of the property. Often there is a guarantee the repayment can never exceed the property value...It will not be free. unless you are very old and borrow very little.
An alternative is where you sell a part of your house to the finance company. You then have to pay rent on the part sold...usually you can pay your lifetime rent as a lump sum up front (amount based on life expectancy). If you pop off soon after it seems like a really bad deal (but you won't know!). If you live to be 100 it will seem good. At least one of the sites allows you to type in assumptions about house price growth. Best to do it in late evening...or they (Age Partnership) ring you as soon as you enter your phone number (giving a fake number means someone else gets the call).
There are different types of ER. One type is lifetime mortgage...you borrow against your property and when you pop off the loan plus interest is paid from the sale of the property. Often there is a guarantee the repayment can never exceed the property value...It will not be free. unless you are very old and borrow very little.
An alternative is where you sell a part of your house to the finance company. You then have to pay rent on the part sold...usually you can pay your lifetime rent as a lump sum up front (amount based on life expectancy). If you pop off soon after it seems like a really bad deal (but you won't know!). If you live to be 100 it will seem good. At least one of the sites allows you to type in assumptions about house price growth. Best to do it in late evening...or they (Age Partnership) ring you as soon as you enter your phone number (giving a fake number means someone else gets the call).
If you are considering this you must be desperate for money. Why don't you sell your house and buy a smaller one. If it is worth £350K it must be a fairly big house and you can tell everyone you are "down-sizing". It might be a bit of a chore selling and buying but at least you would still be in your own house and have some extra money. I am thinking about selling my three bedroomed house and going in to a flat or bungalow as I am getting older, but I would never consider tying myself to a scheme like this.
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