06-03-2020, 08:28 PM
31
Re: equity from your house
Originally Posted by Omah
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If the owner is not planning to move then there is no cost to the owner until death (or, perhaps, being taken into care) intervenes.
06-03-2020, 08:40 PM
32
Re: equity from your house
Originally Posted by Omah
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But a bank loan has to be paid back, with interest, sooner rather than later - not viable for those with insufficient disposable income ..... 
06-03-2020, 08:56 PM
33
Re: equity from your house
Originally Posted by susan m
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My neighbour took out equity release a couple of times . I know one amount was £30 k the other amount I'm unsure of . When she died hubby stayed in the house when he died the company took control of the house . The sons were given 1 month to empty the house . Of course I didnt know what was happening but when I asked one of the sons was he going to rent out the house he replied We cant afford it , equity own most of it .
The house was sold quickly and cheaply.
I can only gather that the interest on the property was huge. I'm also told it's a rolling daily interest rate.
Leave well alone I say
But raising cash to keep your property in a decent state is a worry for people with little savings
06-03-2020, 09:15 PM
34
Re: equity from your house
Originally Posted by Aerolor
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There is always a cost Omah. I would not like to see my property whittled away by equity release. It would worry me and I would know the home I was living in was no longer completely my own and I did not have full control of it. Even if I went into a home it would be better to find something which was not reliant on SS and I could pay my way living in a good quality of accommodation with the value of my house sale,rather than making do with the minimum provided by SS because I could not afford anything else.
06-03-2020, 09:18 PM
35
Re: equity from your house
Originally Posted by Aerolor
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Also a bank loan or a mortgage carries a far less interest rate than an equity release loan. When it is worked out equity release is quite expensive.
There are many who are not able to find the hundreds of pounds per month required to pay back a bank loan over a period of years.
06-03-2020, 11:12 PM
38
Re: equity from your house
I pay off the mortgage on my home in 9 months. There is no way in hell I would encumber the property again. I would rather die poor and leave my children a nest egg then to piss away my equity.Over here, "reverse mortgages" are highly advertised and pushed as if they were "free" money. It is a damn shame because they take advantage of people who are not sophisticated enough to realize what they are doing.
I had a friend who reversed the scam on predatory lenders. He was dying, and knew he only had a year or so to live. He had no kids or other close relatives, so he took every mortgage that any lender would give him and partied his ass off, leaving the crooks in the lurch! The bankers could not have gotten a third of their money back when they sold the property.
Way to go Cliff!
07-03-2020, 01:44 AM
39
Re: equity from your house
HiNot a Fan of Equity Release
I took the decision to downsize massively and buy a house designed for my Son, who is Epileptic.
He cannot drive, or even ride a bike.
It is small, a 3 Bed End Terrace, walking distance of everything.
It is very, very, different from the big house I had.
It is his when I die, no mortgage to pay off, no Funeral Bills.
I give him money out of my Income, which does not attract Inheritance Tax.
07-03-2020, 07:50 AM
40
Re: equity from your house
Originally Posted by Savvy
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I pay off the mortgage on my home in 9 months. There is no way in hell I would encumber the property again. I would rather die poor and leave my children a nest egg then to piss away my equity.
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