Question for the older inhabitants....

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BikerGran · #1 Post by **BikerGran** » Sun Aug 09, 2015 3:41 pm

Anyone been down the Equity Release route?

We're about to investigate it, just wondered if there's anything particular we should ask, and whether you think it's best to go an independent advisor or just pick a company and go with them.

#2 Post by **mangocrazy** » Sun Aug 09, 2015 8:23 pm

Mum and Dad did that in the late 80s/early 90s to release the comparatively small sum of £10k on their 3 bed semi. By the time I came to sell the house as executor after their deaths 15 years later, the debt had swollen to over £100k. With the benefit of hindsight I should have bought the house off them on the condition that they could live there for the rest of their natural, and got a small mortgage for the £10k. If you have kids, I'd suggest that as an alternative.

flatlander · #3 Post by **flatlander** » Sun Aug 09, 2015 10:16 pm

It used to be that to avoid any tax penalty you had to gift the investment 7 years before you reached the after old age bit but a lot has changed recently same as there is meant to be new rules for equity release may be worth checking the Fsa or whatever they're called now.
I do know at least one family that have bought a house and rent it to a parent with the benefits system paying it

HisNibbs · #4 Post by **HisNibbs** » Mon Aug 10, 2015 1:09 am

Need to plan it out and I'd go to an independent advisor who comes with a trusted recommendation. I'm not keen on equity release on the family home via a remortgage. The recent rule change to allow the estate to keep the cash from the sale of the family pile is a game changer too. The thing that hasn't changed is how quickly the cost of a care home eats into your estate, so finding away of passing that on to the kids well in advance, is the advice generally given but wasn't taken by my parents.

BikerGran · #5 Post by **BikerGran** » Mon Aug 10, 2015 8:31 am

Thanks folks. Our kids are not expecting anything from our estate and are all for it. The rules have changed and you can never owe more than the value of your house, also apparently it's a good time to do it because interest rates are currently very low and would be fixed for the entire time - some people may have done it when interest rates were higher.

But I'll take all the comments on board - we will of course get legal advice before doing it, in fact you can't do it without, but it will be advice from our own solicitors not theirs.

Gio · #6 Post by **Gio** » Thu Aug 13, 2015 10:07 pm

We put all our money into property, thats our pension and at some point we will start transferring it into our childrens names to avoid IT.

flatlander · #7 Post by **flatlander** » Fri Aug 14, 2015 7:10 am

We put all our money into IVF. And now have nothing but bills and the most fantastic little boy to show for it :)
Sorry I just like to mention Theo whenever I can :)
Definitely the best investment I ever made even if it has meant don't have to worry about pensions etc ...

Gio · #8 Post by **Gio** » Fri Aug 14, 2015 8:36 am

flatlander wrote:We put all our money into IVF. And now have nothing but bills and the most fantastic little boy to show for it :)
Sorry I just like to mention Theo whenever I can :)
Definitely the best investment I ever made even if it has meant don't have to worry about pensions etc ...

Amazing aren't they! Our grandson is 13 months on Monday after his parents taking 3 years trying.

flatlander · #9 Post by **flatlander** » Fri Aug 14, 2015 12:35 pm

Was talking to someone the other day and they were saying being a grandparent is great because you are much more chilled about stuff. Then they realised I'm just an old dad 14 years of trying ages you but the two years and pregnancy time doesn't half make you full of the joy of life again.

... And no one tells you how strong they are !! He lifted himself up on a door handle the other day by one arm I'm thinking of changing his name to Hercules!

D-Rider · #10 Post by **D-Rider** » Fri Aug 14, 2015 1:09 pm

flatlander wrote: ... And no one tells you how strong they are !! He lifted himself up on a door handle the other day by one arm I'm thinking of changing his name to Hercules!

.... after the horse in Steptoe and Son ?

flatlander · #11 Post by **flatlander** » Fri Aug 14, 2015 4:26 pm

Well I look like step toe and he's as strong as a horse

BikerGran · #12 Post by **BikerGran** » Fri Aug 14, 2015 8:03 pm

Gio wrote:We put all our money into property, thats our pension and at some point we will start transferring it into our childrens names to avoid IT.

Yeah we just want to spend the kids' inheritance though!

Gio · #13 Post by **Gio** » Fri Aug 28, 2015 2:38 pm

BikerGran wrote:
Gio wrote:We put all our money into property, thats our pension and at some point we will start transferring it into our childrens names to avoid IT.
Yeah we just want to spend the kids' inheritance though!

But its only their inheritance if they get it. If mine were wastrels they'd get nothing.

BikerGran · #14 Post by **BikerGran** » Fri Aug 28, 2015 8:28 pm

Yes our money is in property - our house! Our kids will probably get nothing - they're not wastrels either, that's why they are better off than we are! On the other hand, they won't need to support us as we'll have some funds to draw on.

If one or both of us end up in an old folks' home, the council will get the lot anyway so we may as well spend it first.

(unless you believe the government really intends to bring in a cap on how much you have to pay)

Aladinsaneuk · #15 Post by **Aladinsaneuk** » Fri Aug 28, 2015 8:42 pm

Spend a few quid with both a solicitor and an accountant