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Post by donkeychomp on Jun 20, 2023 17:01:12 GMT 1
Has anyone actually done this? I'm wondering what the pros and cons might be. The way I see it is...I don't have anyone to leave my estate to, so why not get some cash out of my home now when I'm still relatively young enough to enjoy it? I won't have to pay it back until I choose to move or pop my clogs. Any thoughts lads and lasses?
Alex
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Post by midlifecrisisrd on Jun 20, 2023 17:08:02 GMT 1
The problem with equity release is that the longer there is between pulling out equity and it being settled when you pop your clogs is the more wedge they take and technically you don't own the house as they have a charge against the title deeds
You would be as well living in it just now up until retirement age
Then sell it and buy cheaper or rent somewhere
You can then spend your wad on cars, bikes, women and booze
What you waste the rest on is up to you 🤣
Steve
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Post by midlifecrisisrd on Jun 20, 2023 17:09:28 GMT 1
Also as you are a spring chicken and could live for 50+ years they probably wouldn't give you much of a percentage of its value
Steve
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Post by rigga on Jun 20, 2023 18:04:48 GMT 1
They wouldn't know how long you live for, that's their gamble .
There's a lot of bad stories regarding equity release, I think the schemes these days are mor deregulated than in previous years, which were dodgy as hell.
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Post by chrisg on Jun 20, 2023 18:05:02 GMT 1
We had a talk by a pension manager and she said DONT even consider equity release.
Its basically taking a loan out using your equity, but not making any repayments. The total owed ,including interest at exorbitant rates, soon racks up. Any money in your house when youve gone "elswhere" will be swallowed up by the equity release company. Kerching.
If you dont have anyone to leave it to, it maybe a good idea.
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Post by Chewie01 on Jun 20, 2023 18:20:00 GMT 1
When my dad looked into this he found that they were charging compound interest on the loan. It will get out of hand and you will end up owing more than your house is worth. I would therefore never recommend someone use this method to get some cash out of a property.
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Post by dusty350 on Jun 20, 2023 18:37:51 GMT 1
NO, NO, NO, Dont even consider it My neighbour, Marie did it when her husband Dave, a plumber for the council retired. They borrowed £29,000 to use for holidays - they enjoyed going on a cruise once or twice a year, and his pension from the council wasn't great. He died about 5 years ago. Marie, now 88, is planning on moving to Portsmouth to be near her son, and her 3 bed semi is on the market for £550,000. The interest rate on the equity release means, as of 2 months ago, she will owe them £300,000 That amount increases every month the house isn't sold, leaving her an ever diminishing amount to buy a flat in Pompey. Absolute daylight robbery
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Post by midlifecrisisrd on Jun 20, 2023 18:48:10 GMT 1
I suspected that's how they would work, it's totally shocking
These theiving gits even have fuds like Carol Vorderman advertising them.
Giving her supposed maths genius it shows how her morals are as let's face it she knows what these people do and is happy to take the job
You can imagine in some cases you can owe more than the house is worth
Steve
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Post by stevesmith on Jun 20, 2023 19:26:22 GMT 1
As said previously - best to down size (when it suits)...
Spend all the money on drugs,alcohol,hookers,motorbikes and gambling... The rest you can squander....
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Post by reedpete on Jun 20, 2023 20:01:14 GMT 1
The only good outcomes from equity release relate to people who extracted a whole pile of cash about two years ago when the rates were at 2% or less…. That was cheap money… lower than the likely long term average increase in property prices so even compound interest would likely see the proportion of the property you owe still increase with time, and if you had something better to do with the money …spend some on an asset you always wanted, invest or gift the rest then it was a no brainier. It’s totally different at this moment. Locking in any type of long term borrowing at today’s rates in financial suicide.
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stoney
Weekend rider
Posts: 81
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Post by stoney on Jun 20, 2023 20:12:36 GMT 1
NO, NO, NO, Dont even consider it My neighbour, Marie did it when her husband Dave, a plumber for the council retired. They borrowed £29,000 to use for holidays - they enjoyed going on a cruise once or twice a year, and his pension from the council wasn't great. He died about 5 years ago. Marie, now 88, is planning on moving to Portsmouth to be near her son, and her 3 bed semi is on the market for £550,000. The interest rate on the equity release means, as of 2 months ago, she will owe them £300,000 That amount increases every month the house isn't sold, leaving her an ever diminishing amount to buy a flat in Pompey. Absolute daylight robbery WTF !! Shame on them.
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Post by steve h on Jun 20, 2023 20:14:46 GMT 1
I suspected that's how they would work, it's totally shocking These theiving gits even have fuds like Carol Vorderman advertising them. Giving her supposed maths genius it shows how her morals are as let's face it she knows what these people do and is happy to take the job You can imagine in some cases you can owe more than the house is worth Steve Typical woke lefty t*at. She's too busy slagging the "tories" to even bother thinking what her advice could do to folks. Them b*****ds hate ordinary working folk and only want us for a vote.... C. Smith. (Not the fat b*****d) Anyhoo, I'm off upstairs to release something else.......something with more morals.....
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Post by Chewie01 on Jun 20, 2023 20:25:13 GMT 1
NO, NO, NO, Dont even consider it My neighbour, Marie did it when her husband Dave, a plumber for the council retired. They borrowed £29,000 to use for holidays - they enjoyed going on a cruise once or twice a year, and his pension from the council wasn't great. He died about 5 years ago. Marie, now 88, is planning on moving to Portsmouth to be near her son, and her 3 bed semi is on the market for £550,000. The interest rate on the equity release means, as of 2 months ago, she will owe them £300,000 That amount increases every month the house isn't sold, leaving her an ever diminishing amount to buy a flat in Pompey. Absolute daylight robbery And that is a perfect example of compound interest. Never, ever sign up for a loan with compound interest.
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Post by chrisg on Jun 20, 2023 20:54:24 GMT 1
I suspected that's how they would work, it's totally shocking These theiving gits even have fuds like Carol Vorderman advertising them. Giving her supposed maths genius it shows how her morals are as let's face it she knows what these people do and is happy to take the job You can imagine in some cases you can owe more than the house is worth Steve CV went down in my estimation when i spotted her selling the ER on tv adds. Legally they have to give you advise , if you take out the policy ,they charge you C £2K for the privilage 🤐
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Post by donkeychomp on Jun 20, 2023 21:21:54 GMT 1
Interesting. Very. This is what I've been offered and I'm using a third party who specialises in this and not going through the stuff you see on TV. Basically I can release £90000 (not all at once if I don't want to) over 23 years and the most I will owe after that time is £260000. In 23 years my home will be worth a damn sight more than it is now (£400000) and I don't really expect to live another 23 years anyway. If by some miracle I am still around I can choose to stay here or move. I do have a couple of assets as well. The Spitfire and the LC but I don't want to sell either at the moment. Sure, one day I won't be able to ride and eventually drive but I'm hoping that's a way off yet. I also know some people who have done this already and they are quite happy with it all. They still own their homes and can stay in them for as long as they desire.
Of course there is another option. Sell and move. But I don't want to move at all. If I won millions I'd still stay here. So for me I can't see another way of getting cash out of my bricks and mortar.
Alex
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Post by midlifecrisisrd on Jun 20, 2023 21:40:38 GMT 1
Only you can decide what you want to do on the figures and advice you are getting
What I would do is get an independent to look over it as well
Remember that 3rd parties get payments for getting deals signed and repeat payments every year it is active
Steve
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Post by donkeychomp on Jun 20, 2023 21:45:56 GMT 1
I know mate. But this guy is brutally honest. And I have asked a LOT of questions. The way I look at it, I either do it or not. If I do, I get £90K, if I don't I get nothing. And when I croak my money goes to a charity (probably Alzheimer's).
Alex
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Post by midlifecrisisrd on Jun 20, 2023 21:47:28 GMT 1
Oh and if Al Pacino can manage to father a kid at 83 there's plenty of time to for a foalchomp to come along 🤣
Steve
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Post by donkeychomp on Jun 20, 2023 21:48:20 GMT 1
LMFAO!
Alex
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Post by Tobyjugs on Jun 20, 2023 21:56:07 GMT 1
Can you turn your property into two flats and sell one?
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Post by veg on Jun 20, 2023 22:25:51 GMT 1
Oh and if Al Pacino can manage to father a kid at 83 there's plenty of time to for a foalchomp to come along 🤣 Steve A braying brat god help us!
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Post by donkeychomp on Jun 20, 2023 22:30:19 GMT 1
No mate I can't make this place into flats.
And I could call the sprog Eeyore.
Alex
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Post by steve h on Jun 20, 2023 23:30:05 GMT 1
Get a couple of lodgers in? "Shelter" can help with it.
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Post by JonW on Jun 21, 2023 0:36:36 GMT 1
I always worry they might bump you off to get the money... hmm...
reminds me of this...
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Post by stirling11 on Jul 3, 2023 14:03:46 GMT 1
Life can change in an instant, trust me, I know, no doubt others on here do too
We have a group of totally independent financial advisors, they are bound by law not to take 3rd party commissions, so they are not beholden to any finance company or bank or insurance company
You pay them for totally unbiased and unencumbered advice
That's who I'd talk to first, if of course you have those types of financial advisors in the UK
Better than having all the facts, and not just the glossy side
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