Equity Route

[Connemmara]

Hi All - with reference to earlier postings I was about to buy my own house this month (August) - however, things have moved on as in - the endowments never covered the house (I knew that) - so why should I borrow more money either in a repayment, keep on paying interest only, or the best thing to go down the equity route and not have to pay anything until I croak it.

As the guy is coming out to see me next Wednesday to talk about everything and I am more or less thinking what do i care about "owning" my house - I am on my own - neither chick nor child - - so know from Equity Route I won't be paying a thing until I die then the Bank/BS/Home takes what they are owed etc - you know as long as I have capital under my mattress why should I care about nieces and nephews (whom I love (when I see them) I feel the money should be mine to do whatever I like. Am I selfish.??? Is there anything I should be aware off. Thanks in advance.

[boxtops]

You are thinking of releasing some of the equity on a house which you own, is that correct?

If you are not planning to leave your house to anyone in your will, then why not? My dad did this, when he died mother benefitted and stayed in the house (which I know won't apply to you), but it was only when she moved into a home and the house was sold that the equity lenders took their chunk out of the sale proceeds. It seemed a good arrangement to me, but I guess you have to pick your company with care.

Don't just sign up with the chap who comes to see you next week - get a couple of other quotes first, see some more chaps!, then you can pick the one which is best for you.

[factor-fiction]

No- you are not selfish. More people should do this. But make sure you are sure about the company

[Connemmara]

thanks guys for the warning. I will tell him I'll look into it. xx

[ubasses]

No you are not selfish. Make sure if you take this route you ensure that you use a Company that are a member of SHIP and that they give you a guarantee against any chance of negative equity. Obviously the younger you are the bigger the debt you will be running up if you live to a ripe old age. What you don't want to do is put yourself in a position of having to sell for Care fees and not having enough to ensure that you are able to go into a high quality home.

[Connemmara]

Genuinely dont know nothing re equity release - now I am the youngest of the family and the rest of family (immediate) are really ill - why should my nieces and nephews whom I said earlier (defffo I don't want to be the rich aunt) get anything - I do see them only Christmas. All of them bar one - still I leave money for him - not a 5p Xmas card - No I need to manup and get the capital under my mattress. Sorry for being harsh.

[ubasses]

You are not being harsh, I think everyone should provide for themselves any any inheritance is a welcome bonus. It is one of those difficult decisions in life as no-one knows how long they will live, and what care they will need in the future. Having had to research Care for my mother I certainly would not want to be reliant on Social Services. Just ensure you get Independent advice and that any Company you use belong to the regulating body.

[boxtops]

ubasses, I don't understand your comment about the longer you live, the greater the debt - that's not what happened to my dad. He released £xx from his house, bought an annuity with it as part of the equity deal - the amount due to the equity firm remained the same as at the beginning, £xx, even though it was 10 years later before mum sold the house.

[ubasses]

Depending on the type of Equity release you get, interest is accruing for the rest of your life and the longer you survive the more you owe. Yes you can purchase an annuity but Connemmara has not mentioned doing this and I do not know her age. The fact that she still has a mortgage suggests that she is not very old and if she survives another 30 years how much will inflation have eroded the value of any annuity or the capital she has taken. Will it be sufficient for her needs as she ages and may need future care.

[boxtops]

I see - yes, if Conne just takes a lump sum that would be different. There's a lot to consider. Important therefore that she doesn't just go for the first offer!

PS People do still have mortgages in their older years - I know, I've still got one.

[Connemmara]

thanks all - there is a lot to look into - I am 62 years old. whatever happens deffo won't want debt at the end of the ole life. Thanks for your interest.

[ubasses]

At 60 I consider Connemmara to be young and living to 90 is not unusual these days.

[anneasquith]

use your money as you wish conn. you worked for it, good luck :)

[boxtops]

ubasses, I like your thinking - I'm with you on that one :-)

[Connemmara]

thanks all I worked from I was 13 until I was 54 - had to get medically retired.

[Connemmara]

Hi all - have spent a sleepless night re this Equity thing - I know the guy is coming on Wed to talk through some things. But when he left I thought to myself (not at the time) thought he was somehow conceited: he looked round my house and said "your house is very clean" and also through our conversation I had told him that I had had a good friend "name" - and he said to me who is this person and I said she was a very good friend - well, she needs to look out as she could be convicted of giving out wrong information. It was later that I absorbed it all. Would you be concerned - don't get me wrong the company is legit but didn't like his attitude. Conne

[Connemmara]

sorry meant to say that his friend had been very good giving me helpful advice as to what to do monetarily.

[boxtops]

I wouldn't tell him anything at all, conne, about anyone else who has given you advice - it's none of his business, and he will see it as competition. Was it him who said your friend could be convicted? If so, I'd report him to his company. That's sharp practice. You don't have to see him - you can always ring the company and say you didn't care for that man's attitude, could they send someone else on Weds.

[EcclesCake]

If you are not comfortable with this chap cancel he appointment and do some research to find another company...or three.

[boxtops]

..and by the way, when he comes, make it very clear that you are NOT going to sign anything on Weds, you need time to think about it and to consider your options. I've had a sales rep sit in my house for 4 hours trying to get me to sign - trying to wear me down. Make it clear that you have got an hour, no more, then you have to go out for an appointment (whether you have or not).

[Connemmara]

thanks boxy - oh God - I do have nerves in my stomach re this whole wretched thing - you know what to do regarding the house.