2007-07-17 18:38:23 · 4 answers · asked by Sheila C 1 in Business & Finance ➔ Personal Finance
this may help ....
http://www.equity-release-centre.co.uk/equity-release-questions.asp
2007-07-17 19:09:09 · answer #1 · answered by bluebottle 6 · 0⤊ 0⤋
Equity Release is often used to allow Retired people to extract value from their property whilst continuing to live in it.
Most 'schemes' may seem generous, but in most cases the Interest on the loan is 'rolled up' and you end up paying Interest on interest ..
They are often marketed as a way to minimise Inheritance Tax... but consider carefully what would happen if you die early .. you may have to live beyond 100 to get full value out of the deal .. and if not, the Insurance Company gets your home at a massive discount (between 50 and 60%) plus they get any increase in the value of the house between when you take out the 'Equity Release' loan and when you die = so no Inheritance Tax because your heirs end up with almost nothing.
I would recommend that anyone considering this route should ask their heirs if they wish to buy (part) of the house off the Pensioner now - the Pensioner then pays a fair rent for any part they no longer own (but wish to continue to live in) to the heirs who thus get the full value of the house.
Read up about it on the 'boards' (NOT on commercial sites like the other link posted)
2007-07-18 02:32:44 · answer #2 · answered by Steve B 7 · 0⤊ 0⤋
contact key retirement solutions.everything you need to know.or better still ring the equity release centre 0113 228 4488
2007-07-18 09:26:20 · answer #3 · answered by MICHAEL R 3 · 0⤊ 0⤋
Talk to an IFA who specialsies in it. Remember if you are on state benefits by taking money from your house could effect your pensions. try www.thepremiergroup.co.uk they have advisers all over uk
2007-07-18 11:35:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋