williamalex1
Money List Winner
Any experts on here, I'm thinking about it 
.
House is mortgage-free and worth approximately £20000.000.
.House is mortgage-free and worth approximately £20000.000.
Equity release?
- Thread starter williamalex1
- Start date
fundy
Ryder Cup Winner
Any experts on here, I'm thinking about it
House is mortgage-free and worth approximately £20000.000.
not sure if youre house is worth £20k, £20m or something in between
in all seriousness for anyone to give you any sort of advice on this they would need to know a lot more about your circumstances
williamalex1
Money List Winner
£200k, Just looking for a rough prediction, and how it works.not sure if youre house is worth £20k, £20m or something in between
in all seriousness for anyone to give you any sort of advice on this they would need to know a lot more about your circumstances
fundy
Ryder Cup Winner
Im no expert but as far as my knowledge goes:
There are 2 types: Lifetime mortgage and Home reversion, the difference being you either borrow against the property or you sell part or all of the property and become a tenant
How much you can get will be age dependant and which of the 2 options you go down
Hopefully there is an expert on here who can give you more guidance, if not make sure you find an an independent advisor who can help you
There are 2 types: Lifetime mortgage and Home reversion, the difference being you either borrow against the property or you sell part or all of the property and become a tenant
How much you can get will be age dependant and which of the 2 options you go down
Hopefully there is an expert on here who can give you more guidance, if not make sure you find an an independent advisor who can help you
williamalex1
Money List Winner
Looks like it would be Home reversion, I want to stay in the house.But not pay anything back till after the eventual sale of the house, after I'm gone to the big course in the sky.
Last edited:
fundy
Ryder Cup Winner
You scan stay in the house in both types as far as Im aware
williamalex1
Money List Winner
edited my post
full_throttle
Tour Winner
This may be of interest to you
SocketRocket
Ryder Cup Winner
Normally you borrow against the value of the property which remains yours untill you die or go into long term care where the property must be sold and the mortgage paid off.
They will offer you an amount as you suggest based on your age and the value of the house. Interest will accrue on the loan until the capital and interest are repaid. You can either pay back a monthly amount to reduce interest or pay nothing and let the interest compound. If the interest and capital payable is worth more than the value of the property when you die or go into care you would not liable to pay more than the property value.
Anyone interested should contact a reputable Agent who would be able to recommend the best options.
rulefan
Tour Winner
NB Interest rates are about 5% - 7% and are Compound rates. ie interest on the interest
PhilTheFragger
Provider of Entertainment for the Golfing Gods 🙄
There was a thread about this a while ago, I think Bobmac was looking into it.
It’s an option for those who are cash poor, but asset rich, and getting on in terms of years
If you have family who you wish to inherit your estate, this will seriously impact on that.
Some see it as the next PPI scandal
Independent financial advisor is your best option
It’s an option for those who are cash poor, but asset rich, and getting on in terms of years
If you have family who you wish to inherit your estate, this will seriously impact on that.
Some see it as the next PPI scandal
Independent financial advisor is your best option
bobmac
Major Champion
I think you'd get around £70k.
The only losers as far as I can see would be your kids if you have any as you'd be spending their inheritance.
Get advice would be my advice
The only losers as far as I can see would be your kids if you have any as you'd be spending their inheritance.
Get advice would be my advice
williamalex1
Money List Winner
Cheers guys, looking at downsizing now
jim8flog
Journeyman Pro
I have a lifetime mortgage with a lifetime fixed interest rate. Due to the increasing house prices the amount of interest added to the loan is far less than the increase in house value by some considerable margin.
I did a no fees one with Legal and General. They paid all fees solicitors and the Financial Adviser's commission. Some of the companies you see advertising have quite high fees
You can choose each year if you want pay back any of the loan and the interest on the loan simply gets added to it, remembering that if you pay nothing back in the end the lender can own all of the house buy you can continue to live in it. The original loan is only repaid (other than by choice ) if I die or if I go in to a residential home. The executors/POA get a year in which to sell the house otherwise the lender takes possession of it. The loan is transferrable if I move house.
How much you can borrow is age dependent as well as property value dependent. Did mine around 65 years old and was allowed a loan of 25% of value.
I did a no fees one with Legal and General. They paid all fees solicitors and the Financial Adviser's commission. Some of the companies you see advertising have quite high fees
You can choose each year if you want pay back any of the loan and the interest on the loan simply gets added to it, remembering that if you pay nothing back in the end the lender can own all of the house buy you can continue to live in it. The original loan is only repaid (other than by choice ) if I die or if I go in to a residential home. The executors/POA get a year in which to sell the house otherwise the lender takes possession of it. The loan is transferrable if I move house.
How much you can borrow is age dependent as well as property value dependent. Did mine around 65 years old and was allowed a loan of 25% of value.
jim8flog
Journeyman Pro
Cheers guys, looking at downsizing now
Always worth looking at how much you loose in estate agents solicitors fees etc to work out if it is worthwhile if you are doing it to raise money.
bobmac
Major Champion
If you had your time again, would you still do it and/or maybe do something different ?
PhilTheFragger
Provider of Entertainment for the Golfing Gods 🙄
Estate agent and legal fees are small fry compared to Stamp Duty on the purchase of the new property
fundy
Ryder Cup Winner
rulefan
Tour Winner
I would. It enabled me to build two extensions and the increased current value of the house far exceeds the value of the equity loan/mortgage.
bobmac
Major Champion
Thanks, interesting.
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