Equity Release Advice

[lankeela]

Friend is mid seventies, owns home outright worth approximately £200.000. Does not want family to get anything so I suggested equity release - but we have no idea how much she would get. Can anyone give me a very rough idea if she wanted to take out cash?

[ladybirder]

Have a look at this. It has a calculator.
https://www.keyretirement.co.uk/equity-release/

[Peter Pedant]

OK I get the famly doesnt inherit bit

but dont get the "so I will give it to an equity release firm" bit

I would never go for equity release ( unless I were the firm selling it hur hur hur) and so would sell the house down size and spenders the rest ....


eqity release ranks with
a) cashing in life insurance policies
b) borrowing money from unlicensed money lenders
c) borroing money from licensed money lenders like quicquid
d) child murder

Oh there are a few other things .....

[fiction-factory]

If she wants to stay in the house rather than move/downsize though, PP, I think it is an option worth considering. She won't get anything like £200000 though if she wants to stay there and may find she has to do compulsory expensive maintenance each work

[fiction-factory]

I see no harm in getting a couple of quotes.

[Tilly2]

The house will be independently valued and she will be offered roughly a third of the current market value.

[ubasses]

http://www.which.co.uk/money/pensions-and-retirement/youre-retired-working-on-benefits-equity-release/guides/equity-release/lifetime-mortgages

The above will also help. There is a lot to take into account, ensure that there is a guarantee that you cannot go into negative equity. Also what effect it would have if a Care Home was needed in the future.

[lankeela]

Thanks all, plenty to have a look at.

[gianty]

Have a look at: http://www.equityreleasescotland.org/calculate/