Aaliya Posted June 18, 2011 Share Posted June 18, 2011 hi i know this is an older post but i feel some of these tips will still help others coming across the post: Equity release is not the best option for everybody. If you have other assets or investments which could boost your income or provide the lump sum you need, then equity release should be unnecessary. And look at whether moving to a less expensive property would be a more suitable way of freeing up money tied up in your estate. If you definately need to go down the equity release route then get professional advice. Equity release plans can be complex and are a major step, so it's vital to get good, independent advice from a financial adviser or family law expert before starting, Watch the costs - Interest rates on equity release schemes are higher than on traditional mortgages. Equity release plans may also involve paying valuation and legal fees, which may only be refunded if you go ahead with the plan. You also remain responsible for repairing and insuring your home and paying all bills. Always look for plans that carry the Safe Home Income Plans logo (Ship), which represents the industry body that promotes safe equity release schemes. This will provide important guarantees, such as maintaining the right to live in your property for life, the freedom to move home without incurring penalties and ensuring that you never owe more than the value of your property. However, if you are in poor health, you may want to avoid a scheme that pays you a monthly income, as it is possible you may not live long enough to get the best return from it. Aaliya Link to comment Share on other sites More sharing options...
Dronfielder Posted June 18, 2011 Share Posted June 18, 2011 New lenders are looking at this market seriously, I am told Link to comment Share on other sites More sharing options...
Aaliya Posted June 18, 2011 Share Posted June 18, 2011 Yes you are right. Recent economic conditions have meant that quite a few lenders (including Prudential, Northern Rock, Saffron Building Society Coventry Building Society and Retirement Plus) pulled out of the market but some are begining to eye up a come back. New lenders will mean that we see more options as competition in the equity release sector from new lenders continues throughout the year. Aaliya New lenders are looking at this market seriously, I am told Link to comment Share on other sites More sharing options...
I1L2T3 Posted June 18, 2011 Share Posted June 18, 2011 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? Spot on. basically what OP is saying is they are struggling to live in their current property. I would sell now. Get a smaller house. Enjoy the released cash and an enhanced lifestyle safe in the knowledge that they still have some owned-outright property to leave. Above all, OP should remember the golden rule is the institutions that want to 'help' you are not your friend. They are businesses that want to squeeze as much profit out of you as possible. My mum and dad treated the staff at the bank as if they were friends and then got took to the cleaners, a mess I'm still trying to sort out after my mum died last year. Be careful. Link to comment Share on other sites More sharing options...
I1L2T3 Posted June 18, 2011 Share Posted June 18, 2011 New lenders are looking at this market seriously, I am told Of course. There are a lot of vulnerable older people out there now in exactly the same position as the OP. A decent house bought at historically low prices but now worth a fortune while at the same time they have little disposable cash with which to enjoy it. Selling up is the solution, not equity release. Sure it's nice for people to stay in their homes but if the bottom line is they can't afford to live in them (perhaps due to their own inadequate pension provision) they should move. The other side to this is many family homes are blocked from going onto the market while older couples and older singles cling on to 3,4,5 bed homes that are too big for them. Link to comment Share on other sites More sharing options...
grafikhaus74 Posted June 18, 2011 Share Posted June 18, 2011 These companies will have your pants down, grease you up and take you roughly. Have you got contact details? Link to comment Share on other sites More sharing options...
Aaliya Posted June 18, 2011 Share Posted June 18, 2011 you have to laugh, absolutely hilarious lol Have you got contact details? Link to comment Share on other sites More sharing options...
scousemouse Posted June 18, 2011 Share Posted June 18, 2011 Someone I know has just done this, not sure if it a route i would want to take, but each to their own. I guess it depends on your circumstances and your age. Link to comment Share on other sites More sharing options...
E-clips Posted June 18, 2011 Share Posted June 18, 2011 People involved in equity release scams are companies out to make a fast buck from people who do not properly understand the issues. They are parasites who very probably vote tory. Link to comment Share on other sites More sharing options...
Dronfielder Posted June 18, 2011 Share Posted June 18, 2011 Someone I know has just done this, not sure if it a route i would want to take, but each to their own. I guess it depends on your circumstances and your age. Spot on, some older folk fear that the upheaval involved with moving to smaller property will be very traumatic, they also fear the possibilty of meeting new neighbours and all this entails. Pride comes into this as well. I have been dealing with equity release for the last 5 years. In a lot of instances the first point of call should be to move to cheaper property and realise assets etc. Link to comment Share on other sites More sharing options...
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