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Equity release. Would you do it?

(27 Posts)
Day6 Sat 22-Sept-18 19:39:38

I just wondered if anyone has considered it, or even done it?

When we die, our estate is shared equally between our children. Joint will is written to that effect.

However, as fairly active and recent retirees OH and I feel a bit stuck. Our income is now limited . We want to do so much, but funds are short. OH has some debts to pay off and I am not in receipt of my state pension yet. Financially once debts have gone and I get a bit more money every month we'll get by, as we do now, but with a bit more of a cushion.

Having spent time with friends who have a small bolt hole/second home (one set have a lovely tiny cottage down south and others have a beautiful lodge in the Lake District) we have been talking and thinking how nice it would be to have a place we could easily escape to for a break - within 80 miles of home but near the sea or in the hills. (We have gone right off airports and foreign holidays. Getting to places has become so stressful and involves so much travelling, queuing, hassle, delays, hidden costs etc.)

Our house is paid for. No mortgage. If we released equity we could have that small cottage not too far away and our children and GC could holiday there too. When we pop our clogs it would be another asset and bricks and mortar tends to be a good investment.

Anyone else thought about raising money on their property? Anyone done it? Any advice? Thoughts or cautionary tales? Thanks.

FlexibleFriend Sun 23-Sept-18 20:28:23

Equity release and Lifetime Mortgages are the same thing. They call it a lifetime Mortgage to try and get away from the stigma associated with equity release. I have one with Legal and general. If I continue to pay the interest the amount outstanding will remain the same but I can reduce it by over paying or increase it by underpaying or not paying at all. It's what Equity release has evolved into. The advice to see a solicitor is sound because like any Mortgage you need a solicitor to complete and act for you. The info is all out there, if you are interested do your research and see for yourself. Personally I would never get one for any of the reasons in the ad's that's for sure. If I could have found any lender willing to lend me what I needed I would have taken a Mortgage but no one would even though my income would cover it, My age ruled me out.