Exactly!!!
But a bank loan has to be paid back, with interest, sooner rather than later - not viable for those with insufficient disposable income ā¦ 
But youāll be dead so why care ā¦ :?:
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.
I understand the above in theory, but am I right in thinking ā¦
ā¦ this so called loan is money gained from the sale of a percentage of your property. If your property is worth more when you die then that percentage is more. Fair enough.
And yes, OK, for them to encourage you to spend Ā£ on improvements sounds a little sneaky. Therefore Equity Release is better spent on something else - a holiday home? Unless you just want, say, a new wetroom in your dying days, which may not make a significant impact on the property value ā¦ so bugger it.
I took the advice of a financial adviser once and bought a endowment mortgage,that didnāt turn out well,my advice if its looks too good to be true it is.
I would not trust a financial adviser as far as I could throw them. They are paid by whatever company is employing them so they get a rake off.
They are just gloryfied sales people disguised under a different name.
Donāt get conned by them.
Banks often use them to drive business their way
Maybe,but I believe it is possible for many older folks to get a small mortgage against the collateral in their home. A mortgage would be no where as costly as equity release as far as I know.
Most people have someone to leave their assets to and if not far better IMO to leave it to a charity where it would do some good rather than let the equity loansharks get their hands on the hard earned asset that is a property.
My neighbour took out equity release a couple of times . I know one amount was Ā£30 k the other amount Iām 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. Iām also told itās 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
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.
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.
Erm ā¦ what interest?
Those are choices that the individual must make.
Indeed it is, but you donāt have to pay it back until you no longer care.
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.
Dood I meant to say the interest that is charged on equity release is a daily rolling interest from what Iāve been told .
Historically equity release has a really bad reputation but I understand there are new laws limiting the amount that can be released.
Iām told Nationwide have some reasonable deals for ER and applicants are given one-to-one consultations.
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, āreverse mortgagesā are highly advertised and pushed as if they were āfreeā 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!
Hi
Not 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.
One of the main reasons for equity release is to help your children financially before you die. When that time comes, they get less - and they know that! 