Equity Release

[izzeybear1]

I am considering Equity release. What are the pitfalls and which is the best route to take.

 

[Rita1]

It depends what you want the money for


Have you l actually looked to see how much you could get


C.A.B might be a good place to go for advice

http://www.responsibleequityrelease.co.uk/

 

[OmOnWeelz]

Three aquaintances we know of have taken equity release and have regretted it.
Friends recently bought a house that was part owned by an equity release company and part owned by the estate of the former owner. The house sold for a lot under the market price, the equity release company got the bulk of the sale price and a very unhappy family got very little and little or no say over the agreed selling price. They actually stripped the house of all fittings and went to war with the E R company if that tells you anything.

 

[Rita1]

 

[Lord Braykewynde]

I looked into this some years ago izzeybear but have now forgot the pitfalls but I do remember the pits were deep and I've never been so sure of anything in my life than not going down that road. I do recall that there have been progammes like Watchdog looking into these schemes and they weren't favourable.

Here are some facts ....

http://news.bbc.co.uk/1/hi/business/3040663.stm

http://news.bbc.co.uk/1/hi/business/3129729.stm

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=406052&in_page_id=8

http://www.guardian.co.uk/money/equity-release

 

[ValA.]

Perhaps better to try to sell your house and downsize - that way you get to keep some money to spend as you wish, have an 'easier' place to look after, and your beneficiaries still benefit eventually.

 

[mullsy1]

There was a case highlighted on my local news.The ER company borrowed the money from a third party.The ER company couldnt keep up the repayments and went bust.The third party is now forcing the elderly couple to sell up to get their money back.

Mike