Equity from your house

Finance & Banking Finance & Banking: Chat / Discussions
1

has anyone taken out equity from your house eg as saga suggest etc?

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2

I wouldn’t touch Equity Release with a barge pole.

In my opinion it’s just all about greedy agents trying to get a share of your investment.

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3

There must be a good way to do it,
but I wouldn’t trust any advice on how to?

4

The advice I’ve always seen about equity release is that it’s not a good idea. I have no personal experience of this. If this cannot be avoided then best advice is to check it out with a solicitor or another professional just to be sure. Something to do with how these work regarding the interest is what to be wary of, apparently.

Plenty of information and advice on the links below:

https://www.ageuk.org.uk/information-advice/money-legal/income-tax/equity-release/

Always better safe than sorry, so worth checking out with a professional, be that a solicitor or Financial Advisor if you need more advice. :slight_smile:

Citizens’ Advice may even be able to help you in this:

5

I agree.

6

Unless you really need the money to live don’t touch it. All these tempting adverts to improve your home or help children to get a house is BS. What they don’t tell you is that if you give money to your children they have to pay capital gains on the “windfall”. They conveniently forget to mention that

7

I thought about doing that but decided against it with all the negatives I heard people saying about it

8

I guess it could work for some people, not that I’ve really thought about it …

Say, you have a £M tied up in your home, it could be a pretty modest place, you don’t get much for that in London nowadays. You couldn’t bear the thought of moving, you need some cash, you are struggling to survive on a measly pension, you don’t have family to leave money to (or you’d rather they made their own way in life) … :102:

9

LQ

If you think about it and use the money to improve your home to make it worth more, that means they can claim more on death on money you borrowed from them in the first place

10

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 ÂŁ150,000 approx. So we win which ever way you look at it

11

Some people have just been in the same house for too long, are old and can’t handle the upheaval of moving.

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Some people in later life must get beyond what makes long term financial sense.

13

Staying in one house for a long time, erm not a good idea in my opinion
buying and selling houses ,we have done it 5 times in 48 years , is the best way to acrue capital we have found.

Staying in one house can only increase in value to the local area. OK at the start but later on you are still stuck ikn the same position.

14

If you’re dead, I don’t think you’ll bothered about that … :lol:

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I think that’s what I was trying to say. :wink:

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That’s, IMO, a common scenario … :frowning:

There are pensioners with a million pounds or more tucked away in offshore investments or in receipt of a £100k pa pension but not many of the ones I meet … :009:

Houses need repairs and repairs aren’t cheap so equity release, in some circumstances, may be appropriate to fund those repairs without any cost to the house-owner … :slight_smile:

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… :023:

18

That is true, dOOd.
My poor old Mum was like that.

She was rattling about in a huge old stone property, cost a fortune to keep warm, but she couldn’t face the hassle of moving.

However, a friend of mine did an equity release scheme several years ago, and doesn’t seem to regret it in the least.

Personally, I have to seek an awful lot of advice before I decided what’s best.

19

Yes, it’s a win win situation for the equity release companies. The adverts saying improve your home with the money they “lend” really annoy me - it’s a con. Unless a person absolutely has to I would not touch equity release with a barge pole either. Better to get a smaller amount with a bank loan IMO.

20

But there is quite a cost to the owner. The equity release companies not only gain from the loan -they also gain when a person uses the money to maintain or enhance the value of their own home. As I said before, a win, win situation for them all round.