EquityReleaseForum.org
open discussion on equity release
Mon, 12/10/2009 - 17:53 — tarak
Hi, To all you like minded guys on the forum, my name is rob i have been considering equity release for a few years now, when i lost my son in a motorbike accident firstly i am divorced have a few brothers and sisters but they are all as one would say sitting pretty, so i have no one to pass my home onto, hence i have been considering releasing equity but have been stalling because of all the conflicting reviews i have been researching online, some alarming and others in favour. Just today i found this forum so i hope you guys especially the ones who have entered into the releasing of equity from your homes, don't mind me asking for tips and advice which is the best plan, other than the reversion which seems a bit daunting. I will be very grateful for the advice and guidance as to which and whether there are any hidden traps.... Love Rob
Equity Release may involve a lifetime mortgage or home reversion plan. To understand the features and risks ask for a personalised illustration.
Rob
Doesn't look like the forum has been any support to you so lets see what I can offer you in way of guidance.
Firstly you will always get differing opioions on equity release from many many sources all of whom have something to say but usually are very ill informed, even some of the so called experts. The internet does not help you here as there is even more to read about.
Get a hold of some 'independent' guides from the likes of the FSA - money made clear range, age concern or help the aged and read the generic info which covers both lifetime mortgage & reversion plans. There are however even still many variations on these with lots of innovation over the past few years and although some of it has been lost due to lenders withdrawing from the market there is still a decent amount to choose from.
DO get independent financial advice from an IFA or Mortgage Broker who has experience in this market and I mean true experience, expect to pay a fee at some point (but not initially) but this shoudl be fully explained to you up front. If they are truly independent they 'HAVE TO' offer you a Fee Only option as well as any option which includes commission. Ask for testimonials if they dont have a website or dont show them on it.
Personally I would always make sure you see the adviser face to face but some of the telephone based firms are also very good.
If you agree to a recommendation being made you should be provided with a Suitability Report explaining the recommendation then a Key Facts Illustration of the recommended product and provider. Don't be frightened to ask to see the adviser's research, after all they have to do it for the FSA so no reason why they should not be able to share it with you - if the cant, why not !
From then its all a process really with application , valuation, offer, solicitor and then completion.
Hope that helps and you are still picking up post from this forum.
Regards
Secret Adviser