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07-03-2020, 08:53 AM
41

Re: equity from your house

Originally Posted by susan m ->
Dood I meant to say the interest that is charged on equity release is a daily rolling interest from what I've been told .
Thanks Susan, I thought that's what you meant, but I didn't know there was any interest charged.

I thought ER meant selling a % of your home, you continue to live there till you die, the place is sold , the ER people take their %, your inheritors take the rest. I'm sure it's not quite that simple, and there are admin fees ...
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07-03-2020, 10:07 AM
42

Re: equity from your house

There are various ways of releasing the equity in your home, depending on what it is you wish to achieve. Your personal circumstances, whether or not you have family you might wish to leave an inheritance to, etc., etc.

I haven't become involved in this and doubtful if I ever would. Basically though, other than the person who wishes to gain from using a scheme such as this to meet whatever their needs for this may be, there is only one 'winner', the company the arrangements are made with. That is what they are in it for, to make money, that is why they are in business.

As posted previously by myself, always take good advice and go into all this thoroughly if considering this is the way you wish to go.

There is lots of advice out there but obviously look for independent advice. The links below explain about equity release and are just two of many where advice can be found:

https://www.moneysavingexpert.com/mo...quity-release/

https://www.moneyadviceservice.org.u...equity-release
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07-03-2020, 11:39 AM
43

Re: equity from your house

Originally Posted by Baz46 ->
There are various ways of releasing the equity in your home, depending on what it is you wish to achieve. Your personal circumstances, whether or not you have family you might wish to leave an inheritance to, etc., etc.

I haven't become involved in this and doubtful if I ever would. Basically though, other than the person who wishes to gain from using a scheme such as this to meet whatever their needs for this may be, there is only one 'winner', the company the arrangements are made with. That is what they are in it for, to make money, that is why they are in business.

As posted previously by myself, always take good advice and go into all this thoroughly if considering this is the way you wish to go.

There is lots of advice out there but obviously look for independent advice. The links below explain about equity release and are just two of many where advice can be found:

https://www.moneysavingexpert.com/mo...quity-release/

https://www.moneyadviceservice.org.u...equity-release
So ... many different 'plans' on offer, some with different names. One plan with a dodgy company can give other plans and providers a bad name.
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07-03-2020, 11:44 AM
44

Re: equity from your house

I guess two things are for sure ...

The ER company never loses out.

You never lose out, coz you're dead.

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07-03-2020, 11:47 AM
45

Re: equity from your house

Originally Posted by d00d ->
So ... many different 'plans' on offer, some with different names. One plan with a dodgy company can give other plans and providers a bad name.
That is about the sum of it and possibly it's like everything in life. It's all 'dodgy' if used wrongly which is why it's so important to look at what happens eventually, not to what is to be gained immediately. That is of course, if there is any interest in future events. For some there is not, that is their prerogative to do with their own assets what they will.

If going in for equity release of any kind the old maxim of 'caveat emptor' is a good one to bear in mind though.
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09-03-2020, 10:55 PM
46

Re: equity from your house

Thanks everyone food for thought?
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09-03-2020, 11:36 PM
47

Re: equity from your house

I wonder what would happen to banks or rather, what will banks do, with these reverse mortgages if the Coronavirus does kill 1% of the population and house prices plummet?

It is mostly the elderly that take out these schemes and the mortality rates for them is higher than the general population.

It is not like those share portfolio margin loans where the bank can ask borrowers to pay them money if the value of the shares falls.

Spare a thought for those young people who have a massive mortgage if house prices dive and the house is worth less than the money they owe if such a disaster happens (let's hope it doesn't but it is interesting to consider)
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10-03-2020, 12:39 AM
48

Re: equity from your house

Originally Posted by Bruce ->
I wonder what would happen to banks or rather, what will banks do, with these reverse mortgages if the Coronavirus does kill 1% of the population and house prices plummet?

They'll take the hit and sack their actuaries.
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12-03-2020, 09:03 PM
49

Re: equity from your house

Originally Posted by realspeed ->
Dood

If that was the case surely moving would be the answer to release cash from the sale of the house and no company would have a claim against your estate

That is what Sue and I basically did when we sold the kennels. That release enough money to buy this place and also have some financial stability to live on.

Investing in another house that can only increase in value if you pick the right area, this has to be the right decision. Since we moved 5 years ago, I can only quote on our experience, the property has gone up by 150,000 approx. So we win which ever way you look at it
Good move RS ,Good luck to you!!
Donkeyman!
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14-03-2020, 04:58 PM
50

Re: equity from your house

what about sell my house and rent a flat?
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