Equity Release

[MaNaAk]

Hello Everyone!

Those of you who have read my thread entitled 'Two Questions' will know that I have decided to follow Nitram's advice and try to get the house disregarded but I am trying to think of other ideas.

One is to rent out dad's room but I would have to consider council tax and possibly extra insurance and the other is equity release. Has anyone else on TP ever considered this and if so what happens? Also how did you get on and what are the pot holes?

Thankyou very much

MaNaAk

 

[Kevinl]

I doubt you'd get equity release if anyone other than the homeowners live in the property plus I think you may find it difficult to get without permission from the cop
K

 

[Jessbow]

What is to be gained by equity release?

 

[Katrine]

Kevin is correct. The equity release provider would require full repayment once the home owner moves to live somewhere else.

We did equity release to allow my late mother to remain in her own home where she was happy and well looked after. I have a thread about it. It was expensive and took ages to set up, nearly a year. We had to go back to the Court of Protection to get the Scottish Guardianship Order amended because the Land Registry would not accept the charge on the property without us having explicit powers to raise a loan, rather than just selling the house, which we did have explicit authority for.

Please only consider equity release for someone who is property rich but cash poor, who is going to go on living in the property, and who is at no risk of outliving the drawdown potential of the property's value. You only get to borrow a maximum percentage of the value, so that with compound interest the borrower should not approach negative equity. Also, it's going to adversely affect the value of the person's estate when they die, so don't go for equity release if anyone is depending on an inheritance.

 

[nitram]

Agree with other posters, you don't want the equity (cash) in the property to be released (become available to spend how you like), you want to stay living in the property.
The mechanism for this is deferred payment agreement - note the loan plus interest has to be repaid on your dad's death, there are also legal charges..

Regarding renting I can foresee all kinds of problems because you do not own the property.

 

[MaNaAk]

Thankyou Everyone!

This is food for thought so I could rent out dad's room after having done some calculations or possibly go back to the CAB. However I am still looking to disregard the property.

MaNaAk

 

[MaNaAk]

Agree with other posters, you don't want the equity (cash) in the property to be released (become available to spend how you like), you want to stay living in the property.
The mechanism for this is deferred payment agreement - note the loan plus interest has to be repaid on your dad's death, there are also legal charges..

Regarding renting I can foresee all kinds of problems because you do not own the property.

Thankyou Nitram!

I am still going for the property disregard but I am trying to have a plan B.

MaNaAk

 

[nitram]

I am still going for the property disregard but I am trying to have a plan B.

Good idea to research all options

< Nearly said 'backstop', decided against !!!>

 

[MaNaAk]

Also my youngest invisible thought I was expecting him and my other invisible to pay a top-up I told him I wasn't expecting this and I thought that I would do anything to avoid asking them to pay a top-up!

MaNaAk