Stamp duty

[motorbiking]

Nonsense. Release a tiny bit equity and live in blissful ignorance.

Equity release. Doesn’t free up the house dummy.

 

[Mottie]

Equity release. Doesn’t free up the house dummy.

Our friends parents took out £30k equity release years ago and…….. stuck it in the bank! When the mum sold their house a year ago to move in with them, it sold for £650k. They had to pay £50k because she hadn’t died and only ended up walking away with £300k. What idiots!

 

[noseall]

Equity release

Correct. Worry not about house tax.

Dummy.

 

[King Billy]

Our friends parents took out £30k equity release years ago and…….. stuck it in the bank! When the mum sold their house a year ago to move in with them, it sold for £650k. They had to pay £50k because she hadn’t died and only ended up walking away with £300k. What idiots!

Have you made a mistake with your sums?
£30k in the bank for say 10 years will probably yield about £15k interest, so a final sum of about £45k.
The house sold for £650, bu they had to pay £50 for the Equity Release, leaving £600k, plus the Bank Account is £645k, not far off the £650k sale price?
What's the problem? They had that lump sum in the bank for all those years for emergency funding, or whatever.

 

[noseall]

It is. A starter home is around £450k. Dunno about how it is round your way but our son, like many of our friends children, can’t afford a house

Different argument.

in the same area as there parents

Glad you mentioned them. Tell them not to worry about house tax or about releasing some equity.

 

[motorbiking]

Nosenout shares his wisdom

 

[motorbiking]

Our friends parents took out £30k equity release years ago and…….. stuck it in the bank! When the mum sold their house a year ago to move in with them, it sold for £650k. They had to pay £50k because she hadn’t died and only ended up walking away with £300k. What idiots!

It’s an absolute scam and withdrawing the money to put in savings is the dumbest thing ever.

 

[motorbiking]

Have you made a mistake with your sums?
£30k in the bank for say 10 years will probably yield about £15k interest, so a final sum of about £45k.
The house sold for £650, bu they had to pay £50 for the Equity Release, leaving £600k, plus the Bank Account is £645k, not far off the £650k sale price?
What's the problem? They had that lump sum in the bank for all those years for emergency funding, or whatever.

You are taking out a loan with zero repayment and charges and fees loaded on at between 6.5 - 8%. That is on top of any “equity” growth clause that allows them a slice of increases.

 

[noseall]

Have you made a mistake with your sums?
£30k in the bank for say 10 years will probably yield about £15k interest, so a final sum of about £45k.
The house sold for £650, bu they had to pay £50 for the Equity Release, leaving £600k, plus the Bank Account is £645k, not far off the £650k sale price?
What's the problem? They had that lump sum in the bank for all those years for emergency funding, or whatever.

It's a simple concept. Too simple for some including liar MBK.

 

[pete01]

Im planning on giving my house to my kids not some equity release scammers.

 

[King Billy]

It’s an absolute scam and withdrawing the money to put in savings is the dumbest thing ever.

I don't disagree. But for some it's a good opportunity to have the wonga now.

You are taking out a loan with zero repayment and charges and fees loaded on at between 6.5 - 8%. That is on top of any “equity” growth clause that allows them a slice of increases.

Yes, having the wonga now costs money.
Just like in situations like Dragon's Den, you sell a share of your asset in order to have the cash, now.
That's how finance works.
But it doesn't explain Mottie's mathematical mistakes.

 

[pete01]

Well the 50k mottie mentioned does stay at 50k interest is added.

 

[noseall]

Im planning on giving my house to my kids

Noble.

not some equity release scammers.

You should never give money to scammers.

 

[pete01]

Noble

Do you not want your kids to inherit from you?

 

[noseall]

Do you not want your kids to inherit from you?

If circumstances mean that I have to forfeit any inheritance for the good of the testator, so be it.