EquityReleaseForum.org
open discussion on equity release
Hi there
Looks like I'm one of the first visitors to this forum! Has anybody out there used an equity release scheme and can tell me a bit about this. Can I pay off my mortgage and can they kick me out of the house?
Thanks in advance 
BallroomDancer
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Hi BallroomDancer. I think you can do anything you want with the money - and I also think that paying off your present mortgage is part of the deal, as your equity release holder (or whatever you call it) becomes your new mortgage holder.
I believe that the sum of money you receive IS a mortgage and has to be the only mortgage.
We found it painless and fast. But also expensive. Everyone involved takes a bit of the money before you get it - solicitor, the fee the mortgage giver charges for administration, plus your first contact, which is usually a broker/company specialising in this. So three lots of charges. You'll lost anything from £1,000 to £3,000. They'll also probably hold back a thousand or so, against you're doing something like damp rot treatment etc.
So be prepared to be be offered (for instance) £30,000 and actually receive something like £27,000.
As the interest piles up against your eventual demise, there are no payments to make, so you can't be thrown out for non-payment or default, but probably half the value of your house goes back to the mortgage holder after 20 or 25 years, when it is sold. Your family or other beneficiaries get the rest.
Just make sure it's not for a fixed term, but rolls on as long as you or your partner live. Also make sure that it can be transferred to another property if you want to move.
good luck.
dupret
Thanks dupret. That's really useful. I'll have a think about it - I'm in no rush, but I could really do with the extra few pennies I'd have every week if I could clear teh mortgage.
Hello BallroomDancer, I took out equity release in the summer. I had a great deal whereby the provider waived their fee and also provided cash back to cover the broker's fee. The only actual fee I paid was the Solicitor's. So have a good look around! There are some great deals on offer! Best wishes, Gaspare.
Gaspare
Hi Gaspare. Thanks for this, I'll be sure to spend time hunting out the best deal!
Hi,
I had a great deal last year with Age Partnership. Did everything for me and found me the best deal. I checked out a few other offers but none came near theirs. Guess this sounds a bit like an advert but they really were helpful. I used the money to get a new car and good holidays. Still have over 30% interest in my property and not spent all the money yet. Providing you are sure you want to stay in the same property for many years I think it is a great way to utilise your assets.
Yours,
Brishake.
Brishake
Probably for about 6 months, I have been thinking of equity release, now with our daughter finally moving away in January, it has become more of a serious thought.
I have a loan/mortgage against the house, which would be very nice to lose. I would also love to take my wife on a really nice holiday, and the old car has seen better days.
Both my children have good situations and are quite happy even if it meant losing some of their inheritance.
Problem is as both my wife are on incapacity benefit, and we are worried that doing this would mean losing out on that to gain equity. Bit like putting in one hand and taking away with the other.
The idea of posting on this forum before talking to the main people such as Age Partnership, is does anyone else have a similar situation, and if so what advise would they give.
Many thanks,
Victor
The impossible I can do today, miracles take a little longer!
Hi Brishake Without being too personal what was the overall cost of your equity release with age partnership as im thinking of going down the same road in the near future. Thanks SandyB
The total cost SandyB including solicitor was £1116. This was about 3.5%.
Strongly recommend Age Partnership if you decide to go ahead give them a try and compare.
Brishake
Hi, Thanks for all info and comment. Useful to make my mind up.
Question? What would be the amount of interest charged over, say a five then ten year period on the full allowance of £91,000 Please?
I wish to have some idea of the amount my children would inherit from the original £250,000? Any help appreciated.
Hello, thanks for the information It helped me do more homework and plan for the future of my children.
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