Home Equity Release

[Bahco]

I have a friend who is looking to release some capital from his mortgage free home. The house is worth approx 110K.

He is in his sixties and has a wife but no kids to leave his house to so it makes sense to enjoy the cash now rather than some long lost relative benefitting.

I Assume they would give around 50% in cash with the home reverting to the company on the death of both parties.

Has anyone got any experience of doing this and can you tell me the pros and cons.

 

[Alarm]

Not sure of all the details but someone on ex`s side did this and had to go into a home and it caused loads of problems IIRC.
Moral there was enjoy it and die.

 

[Diane2]

http://www.moneysavingexpert.com/news/protect/2010/06/should-you-equity-release

always a helpful website..

 

[anobium]

If he has no kids go for it.
The only downside is that the government will have less to claim back on the value of the house in the event he or his wife ends up in a nursing/rest home.

 

[HERTS P&D]

He could sell the house and go into rented?

Andy

 

[Whitespirit66]

He could sell the house and go into rented?

Andy

Only problem with this is, if they live for another 20 years, they would spend more than the sale price of the house. A very conservative rental of £500p.m. works out at £120, 000 over 20 yrs.

In this case, equity release may be suitable, but as said, the possible implications of future care needs should be investigated.