Mrs Hyde Posted June 21, 2007 Share Posted June 21, 2007 Has anyone done this?, we're thinking of doing it, as we're "cash poor property rich", we need to free some cash up, and leave some for our family, some people have warned us off saying they dont give you much, and you pay a lot of interest back, that dosent sound very good:mad: but enough folks are doing it!! Im a bit suspicious though:suspect: Link to comment Share on other sites More sharing options...
cgksheff Posted June 21, 2007 Share Posted June 21, 2007 I'd only do it if I had noone to leave it to, or no intention of leaving anything. It is a very expensive way of getting cash. Have you thought of selling and getting somewhere smaller? Link to comment Share on other sites More sharing options...
digirunoff Posted June 21, 2007 Share Posted June 21, 2007 you need to seek proper independant financial advice, working for a massive financial institution I would say that is the only way you make a proper decision, I would also point out that equity release really isn't for some people - sometimes the intrest rate are sky high, and I would severly recommend against it if you want to leave a substantial amount of money/equity on your property, also please be aware of negative equity, say if there's a massive property crash (say when hell freezes over) then it may leave you in a situation you really don't want to be in. but please please please seek properly qualified advice! Link to comment Share on other sites More sharing options...
sTaGeWaLkEr Posted June 21, 2007 Share Posted June 21, 2007 ^^^^What he/she said. This is not something you should go into lightly. There are many things to consider with equity release - particularly if there are people left behind that you'd like to benefit. You should seek advice from an independant financial adviser - not one that's tied to a company who will probably want to sell you their products. Link to comment Share on other sites More sharing options...
Cantdance Posted June 21, 2007 Share Posted June 21, 2007 the younger you are, the worse they are. Why not downsize and release the capital. If you want to leave something for your family 1. make sure you have written tax efficient wills to reduce inheritance tax 2. consider placing capital (released from the downsize) into trust (avoids care home fees and iht) and draw a regular income from it 3. better still, downsize and spend the capital - the family can build up their own wealth. good luck Link to comment Share on other sites More sharing options...
Swan_Vesta Posted June 21, 2007 Share Posted June 21, 2007 3 quality replies all offering good advice. These companies will have your pants down, grease you up and take you roughly. Seek qualified advice and don't believe the hype Link to comment Share on other sites More sharing options...
Mrs Hyde Posted June 22, 2007 Author Share Posted June 22, 2007 3 quality replies all offering good advice. These companies will have your pants down, grease you up and take you roughly. Seek qualified advice and don't believe the hype love this one:hihi:thanks all, just endorsed most of what we were thinking and what we've been told, it sounds like a bit of a minefield:huh: the interest thing is very worrying, may look at it, but all the good advise on here will make us very wary Thanks again:) Link to comment Share on other sites More sharing options...
Dronfielder Posted October 30, 2008 Share Posted October 30, 2008 Another couple of tips. 1) Look for companies and lenders who subscribe to SHIP. This will give you the guarantee that the property will never go into negative equity. 2) Drawdown products will give you flexibility to draw monies as and when you need it. 3) Interest rates can be better than normal residential mortgages. IE Stonehaven now offer a rate of around 6% fixed for the term of the loan, in comparison Halifax have a standard variable rate today of 6.5%. 4) The regulation of Equity Release by the FSA has got rid of a lot of poor value schemes. Please note that "Sale and Rentback" schemes" are sometimes marketed as Equity Release but are not regulated by FSA. 5) You can protect part of value of property to be passed to family. 6) Envolve your family in any decision that you make regarding Equity Release. This could save a lot of arguements at a later date. 7) Your independent advisor should also consider the impact on any means tested benefits from any equity release. I use specialist software to make sure that all benefits are considered. Have a look at FSA website (money made clear). This is a part of the FSA website to give the public information regarding many products in a clear and easily understood maner. It is not specific to any product providers or influenced with any sales jargon. 9) Most Equity Release providers are not funded in the same way as traditional banks. The credit crunch has had the opposite effect to Equity Release lenders than traditional banks. It seems that Equity Release providers are activly lending more than ever and have greater flexilbility in their critera. Link to comment Share on other sites More sharing options...
matsalleh Posted October 30, 2008 Share Posted October 30, 2008 love this one:hihi:thanks all, just endorsed most of what we were thinking and what we've been told, it sounds like a bit of a minefield:huh: the interest thing is very worrying, may look at it, but all the good advise on here will make us very wary Thanks again:) This post is 1 yr old,under the present financial state,I would imagine it is certainly not worth doing it now. Link to comment Share on other sites More sharing options...
Dronfielder Posted October 30, 2008 Share Posted October 30, 2008 On the contrary, Funding for Equity Release is boyant, strict regulations in place from FSA. Falling property values would prompt early investigation. Link to comment Share on other sites More sharing options...
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