21-05-2013, 05:24 PM
1
equity release
Anyone out their experience of EQUITY RELEASE.Our house is nearly paid off & we want to help our 3 kids get on the housing market. THey are all renting atmo.
We inherited a pile from our parents and we want to pass it on now so we can give them a boost.
WE are quite happy to downsize, any bright ideas.?
21-05-2013, 05:48 PM
2
Re: equity release
It's a lovely idea to want to help your children Robert and we helped both our children to get onto the housing ladder and I have no regrets, although it was a while ago now.I am not sure if you are asking about equity release schemes or just downsizing and releasing some cash from your house so you can help your children. If you are talking about equity release schemes, I would say be very, very careful. Personally unless I was really desperate or very elderly with no children or spouse to think of I would not touch equity release schemes. There are so many things to take into consideration with the schemes equity release companies offer and you need the advice of an independent professional if you are even thinking of going down this road. My advice would be definitely don't do it unless there is no other option.
It is a lot easier to simply sell your house outright and then clear your mortgage, so that you are free to buy a smaller, less expensive house for yourselves mortgage free. Depending on your circumstances this should leave you with some free capital so you can help your children. Doing it this way is without restrictions, apart from something called the 7 year giving rule. This means that if you and your wife give away money one of you will have to survive for 7 years from the gift being given to avoid tax being payable on the gift. I assume you will have made a Will and if everything is in joint names with your wife it should be OK to do this - but go and see an independent financial advisor and then a solicitor to make sure there are no complications, because everybody's circumstances are different.
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