equity release. question

Discussion in 'Motorhome Chat' started by kalamitty, Jun 23, 2016.

  1. kalamitty

    kalamitty Funster

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    right its a nice thought getting a chunk of money, from the value of your house and spending it on a new motorhome etc. and its paid back when both have died, with the company taking their chunk, and then surviving kids get the rest. but do you do this or wait till your are put into a home and the council/social put a charge against the property so gradually it dwindles away till nothing left, what would you do? i sold my motorhome using the money to help me move into rural wales, after taking early retirement, i am now living the dream of a peaceful life, doing gardening helping locals on school run, and if nice walks on barmouth beach.
     
  2. vwalan

    vwalan Funster

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    if you have medical needs or a mental problem ,like dementia they cant make you pay.
    plus you can transfer the property to the kids etc before you go in a home .
    use the rules to suit you not them .
     
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  3. Kool Kroozer

    Kool Kroozer Funster

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    Sounds like you already have a good lifestyle.. But know what you mean about the equity its something i often think about myself but apparently you need to be 55 or over
     
  4. Coastal Cruiser.

    Coastal Cruiser. Funster

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    I could be wrong but I think they can still make you sell if you have dementia as they make a next of kin the power of attorney, mum and dad have just bought a bungalow from someone who went in a home with it and the daughter had to sort it out.

    Transferring the property over has to be done 7 years before I think otherwise there are tax implications.
     
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  5. vwalan

    vwalan Funster

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    no. they cant make you .
    its a hard fight sometimes the authorities dont want to accept the rules . took my brother and i two years arguing with our local shambles but we won .
    many think transfer of the house goes back 7 years as well . but that is only for inheritance tax .
    if you do it a few weeks before then it isnt allowed but a year 18months its ok.
    many dont fight for it so lose out .
    i know lots round here that wont stand up for their rights .
    the nursing and care folk lie through their teeth . its really incredible just how bad the system is .
    all i can say is google is your friend .
    there are solicitors set up to help.
    but dont give in . the rules work for us as well as authority.
     
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  6. Griffs

    Griffs Funster

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    Oh yes, they can make you pay, also handing over to your children is not so easy there are time limits , also your children could get divorced if they were married ,bang goes a chunk of the pot.

    It is no easy way to these situations.
     
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  7. vwalan

    vwalan Funster

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    not if you have mental or medical problems . the reason for going into care .
    there really arent anytime limmits on care and transfer but if its a year or 18 months you win .
    unfortunately many just dont fight . thety give in and dont check out the rules .
     
  8. tofo

    tofo Funster

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    Don't get me wrong
    Money is LOANED WITH INTEREST

    You are losing from the minute you sign

    To move to a smaller prem later
    You will have to pay that debt plus whatever costs prevail

    You need to be desperate I'm thinking
     
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  9. klaatu

    klaatu Funster

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    Equity release is very tempting, and we've considered it, but be very careful and take independent advice before doing it.
     
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  10. Larrynwin

    Larrynwin Funster

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    Best way in my opinion is to take it as a Lifetime Mortgage with the option to pay off some interest if and when you can afford it, that way you get some capital and also reduce the interest accruing too much.
     
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  11. MH 55 FUN

    MH 55 FUN Funster

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    Equity release is a desperate measure i.m.o. - interest rates are around 5%+ & the interest is compounded yearly - a £50k release can double all too quickly.

    Definitely take professional advice relating to YOUR individual circumstances before proceeding.
     
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  12. vwalan

    vwalan Funster

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    far better to down size to a cheaper area . specially one that is in a cheap car insurance area etc .
    its like the mortgage in the first place . paying it off as fast as you could was the way. then the mortgage companies put clauses in to stop you . carefull reading of small print is the key.
     
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  13. Minxy Girl

    Minxy Girl Funster Life Member

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    You could fall foul of the 'deprivation of assets' rules though if you give your property to your kids, even after 18 months or so, as there's no time limit on that.
     
  14. Larrynwin

    Larrynwin Funster

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    There are circumstances where it could be sensible .
    A 70 ish year old childless couple who are property/asset rich but wish to enjoy their remaining years could well benefit rather than leaving the value of their property to the state.
    Or indeed where a couples children are financially sound and are happy for the old ones to take advantage of what they have accrued over a lifetime.
     
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  15. vwalan

    vwalan Funster

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    but as many have done before it can work. . do you know if they have gone back further than six months as i dont know of any .
    thats for minxy.
     
  16. Larrynwin

    Larrynwin Funster

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    A friend of mine , following the death of his wife talked to his children about equity release and they encouraged him as they were ok.
    As a result he travelled extensively with a new partner and finally passed on a couple of years back.
     
  17. Minxy Girl

    Minxy Girl Funster Life Member

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    No knowledge of anyone personally who's had this but when my Mum inherited some money a few years ago (totally out of the blue) it was something which I looked into in great detail and it appears if they wish to the authorities CAN go back as far as they want ... if they can show it was 'given away' with the intention of preventing it being used for the care of the giver (eg they already had a health condition that meant they'd most likely need care in the future) they can claim it back from those who've received it!
     
  18. vwalan

    vwalan Funster

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    yes i already said inheritance is seven years .
    but thats not what we are on here .
    i,m lucky perhaps i play apart of a watch authority group. we monitor what authority is doing . on transport . health . etc . as i have also said you do have to protect your parents property . i had a dad with dementia and a mum with medical needs . we won .
    yes their pension is took off them and pocket money given . but thats ok .
    also there are cash or money in bank etc limits , sort it . do it now .
    there are rules let the rules work for you not against you .
     
  19. Larrynwin

    Larrynwin Funster

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    Not that straight forward. Taking out equity release gives a first charge on the property to the mortgager , also it's likely that any proceeds could well have been spent by the time care is required.
     
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  20. SuperMike

    SuperMike Read Only Funster

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    What Minxy Girl says. Be very careful. When we signed over stuff to me, at the time our solicitor warned that if they get a stiff of anything that they consider deliberate evasion then they can have it all called back.
     
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