Stamp duty

[motorbiking]

Based on the figures quoted, it was obvious:

And now I've highlighted the inaccuracies, the anecdote is being further elucidated to meet the desired result.

Perhaps the omitted details could have been better explained at the outset.
A friend has taken some Equity Release in their home, but the amount payable to regain that equity is nearly double the original Equity Release value, not 50% of the current worth of the asset.
With a Lifetime Mortgage scheme, the accumulated interest on £30 over 25 years could result in £25k to £45k owing on the sale of the house.
That nearly aligns with £50k being paid on £30k Equity Release via a Lifetime Mortgage scheme.

So you accuse the OP of lying because you haven’t understood.

Shared equity on a multiple with a release fee.

1000s of victims just like the one @Mottie knows

 

[King Billy]

Same problem

Explain which comment you are addressing and what or how are the problems the same.
Your usual vague references don't do justice to a sensible debate.

 

[King Billy]

So you accuse the OP of lying because you haven’t understood.

a) I do understand the various Equity Release schemes.
b) I an familiar with the usual anecdotes related on here,
c) I am familiar with the usual embroidery and later added details to achieve the desired result of anecdotes used here.
d) I did ask if there had been a mistake made in the quoted figures.
e) Mottie has form for quoting anecdotes that are designed to portray him as an honest broker.
f) you and Mottie have interpreted that as an accusation of lying, guilty conscience?

Shared equity on a multiple with a release fee.

There are schemes that incur no early release fee in specific cases, e.g. long-term care.
Also ERC reduce with time 'served', so over a 25 year duration the ERC would most probably have been reduced to zero.
At the higher interest charges there is usually no ERC.
So whether there was a ERC is debatable. Mottie introduced that concept at a later date to embroider his anecdote.

1000s of victims just like the one @Mottie knows

I know, and a generality has no relevance to this specific case.
There are some schemes that are OK, but they maybe in the minority. It doesn't per se mean they don't exist.
My query was on the original figures quoted which given the information at that time, did not add up.

 

[Koolpc]

Is stamp duty where humans jump up and down?

 

[King Billy]

Is stamp duty where humans jump up and down?

It needn't concern you, there's no stamp duty on kennels.

 

[Koolpc]

It needn't concern you, there's no stamp duty on kennels.

Phew!! Thank you my friend.........for a moment there I thought I was going to be in the dog house!!!

 

[motorbiking]

My query was on the original figures quoted which given the information at that time, did not add up.

Something you cannot know.

 

[Mottie]

Perhaps the omitted details could have been better explained at the outset.

Perhaps the omitted details could have been better understood at the outset by anyone not stupid enough to think you’d pay just £20k interest on £30k over ten years let alone 25+ years.

You do know what 'equity' is, don’t you?

 

[King Billy]

Something you cannot know.

Given the figures provided at the outset, they didn't add up.

 

[motorbiking]

Given the figures provided at the outset, they didn't add up.

see above

 

[King Billy]

Perhaps the omitted details could have been better understood at the outset by anyone not stupid enough to think you’d pay just £20k interest on £30k over ten years let alone 25+ years.

You do know what 'equity' is, don’t you?

I suggested a time gap of about 10 years, and £20k would nearly have covered the accumulated interest on a £30k loan over that time period on a Lifetime Mortgage at 6.5% interest.
Obviously at a slightly lower rate it would have covered it over 10 years.
So a repayment of £50k on a 10 year lifetime mortgage of £30k is easily possible.


Remember I did ask if there were any errors in the figures, and clearly there was an omission of detail, ie the 25 year time period, which is important.
But also the issue about any ERC was omitted. Even then, some conditions will alleviate the ERC. So it was easy to assume it had been a lifetime mortgage with no ERC applied, over 10 years.
You've embroidered the detail to support your narrative, as usual.
If you are going to invent anecdotes, ensure you include relevant detail.

 

[King Billy]

see above

More opaque comments.

 

[motorbiking]

More opaque comments.

You could model this in 10s using any AI. There are plenty of scenarios where the release fee and equity consumes 75% of the property value for just 30% release and only modest exit clauses. The fact is you called BS because you knew nothing about how the schemes work. Now you are trying to argue otherwise.

 

[King Billy]

You could model this in 10s using any AI. There are plenty of scenarios where the release fee consumes 75% of the property value for just 30% release and only modest exit clauses.

Of course there are schemes which are more or less scams. But I've already explained the existence of such schemes does not ensure that this was one of them.

The fact is you called BS because you knew nothing about how the schemes work. Now you are trying to argue otherwise.

Nonsense, I said in my first post, assuming a 10 year period, and I've shown how a £20k interest charge is easily attainable on a £30k Lifetime Mortgage of a little under 6% accumulated interest, and assuming the avoidance of ERC due to the remaining parent moving in with a child, which could be classed as 'care'. Thus negating an ERC.
The 25 year detail and the supposed paying of an ERC was embroidered in later.

As you mentioned AI, allow me to prove you wrong on a lifetime mortgage of £30k over 10 years at 5.5% accumulated interest.

Accumulated interest on a £30,000 lifetime mortgage over 10 years at a 5.5% annual compound interest rate is £21,326.69.
This brings the total amount owed after 10 years to £51,326.69.
Because lifetime mortgages (equity release plans) do not require monthly payments, the interest is "rolled up" and compounded. Interest is charged on the original loan amount as well as the interest that has already accrued.

Now if Mottie changes the detail later, then obviously the given figures need to change later.
So in his original post, assuming a 10 year period, his provided figures did not add up, which is why I questioned them.

If it was anyone failing to understand how equity release and accumulated interest works,it was Mottie for omitting the important detail.

 

[Mottie]

I suggested a time gap of about 10 years, and £20k would nearly have covered the accumulated interest on a £30k loan over that time period on a Lifetime Mortgage at 6.5% interest.
Obviously at a slightly lower rate it would have covered it over 10 years.
So a repayment of £50k on a 10 year lifetime mortgage of £30k is easily possible.


Remember I did ask if there were any errors in the figures, and clearly there was an omission of detail, ie the 25 year time period, which is important.
But also the issue about any ERC was omitted. Even then, some conditions will alleviate the ERC. So it was easy to assume it had been a lifetime mortgage with no ERC applied, over 10 years.
You've embroidered the detail to support your narrative, as usual.
If you are going to invent anecdotes, ensure you include relevant detail.

I really couldn’t give a flying one about what you think.