Equity Release Yes Or No?

[corylus]

Any advise.

[jackthehat]

1. How old is the youngest home-owner?
2. What LTV (Loan to value) would you be looking at?

[factor-fiction]

Depends on lots of things. One factor is what you want the money for- if you want to pay off debts or have a once in a lifetime holiday then it can be a good way to fund these, but if you want to invest the money in a savings account then it's not costs efficient

[Jennykenny]

Everything I have read - no!
Please reconsider all possible alternatives: Monday to Friday lodger (see Google), take in students from overseas, (see your local paper or language schools in towns near you), a full-time lodger (you could still have a lot of privacy (ask Answerbank posters for their experiences), check with Citizens Advice that you are getting all the benefits that you are entitled to.
Downsize to a smaller home/one bedroom flat/studio flat.
Use Equity Release as an absolute last possible answer.

[factor-fiction]

But it can make sense if you choose to enjoy your own money rather than pass your property onto others- especially if you have no family.

[Jennykenny]

I agree Factor, except if you need to go into sheltered housing/nursing home. I think that ER can cause a lot of problems in that direction.

[factor-fiction]

^ if it means you can afford better nursing care accommodation I'd have thought that it was a good use of your resources

[ubasses]

Have a look at the Which Guide to give you a better idea if it is suitable for you.
http://www.which.co.uk/money/retirement/guides/equity-release-explained/

[Old_Geezer]

I get the impression you don't get that good a deal, so only if you need the money maybe ?

Might be better in 'personal finance' than 'law' ?

[ladybirder]

If you do go down that route make sure the company you deal with is a member of Safe Homes Income Plans (SHIPS). This will ensure you never get into negative equity.
The older you are the better the deal. You can sell a portion of your house outright but you won't get the current market rate as the company may not collect for a long time. That way there is no interest ticking up. Or you can ask for a lump sum based on the value of your property but you can save money by having it in smaller portions therefore only paying interest on what you have actually borrowed. BUT if you can downsize that is the best option.

[Everhelpful]

NO NO a THOUSAND times NO,from experience!!

[jennyjoan]

Cory - when I was ending my mortgage in August 2013 I looked at ER but it is not a good idea - you need to look at it very carefully.

[Peter Pedant]

any advice ? Oh god No
unsuitable for all classes

Times Law Report today - promise to house after selling house is not enforceable

a loan at 7% doubles in 7 y

[Peter Pedant]

// it is not a good idea - you need to look at it very carefully.//

in short go on looking at it until you conclude it is a deeply c+++ idea