2007-04-23 01:06:54 · 2 answers · asked by christopher o 1 in Business & Finance ➔ Personal Finance
The easiest, safest and by far the best way to release equity from your property is to sell it and buy somewhere cheaper.
2007-04-23 21:01:00 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Be very careful what you sign up to.
'Equity Release' sounds really good, but it's just a way for Banks & Insurance Companies to get your house for peanuts.
You might be better off selling the house to your children etc... - for sure shop around and look at the 'down side' as well as the immediate cash advance.
A typical scheme might be for (say) half the house. They value the house at (say) £300,000 and so half will be £150,000.
Next they will decide what 'fraction' of this to offer you - it depends on your age, however you will be lucky if they offer 1/3rd (£50,000).
You get the right to stay in the house untill you die. When you die, they take half the house AT THE THEN VALUATION.
Say you live another 15 years. The value may have doubled in that time. End result = they end up with half of a house worth £600,000 = £300,000 for a total cost of £50,000 (or less)... not a bad deal !
2007-04-23 11:53:36 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋