Part time teacher. Forced to retire at age 65.No children. Still of good health. Selling house planned, but now reluctant to do so. Is there another way?
2007-09-22 23:18:40 · 6 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
I'm going to assume the house is worth a lot more than 50k .. if so, various 'equity release' schemes exist ... I would NOT suggest this to anyone who wants to leave any sort of inheritance to their kids, however it may be suitable for you ...
It generarally involves selling your house to an Insurance Company (for less than half of what it's worth) in exchange for the right to stay in the house untill you die ... (at which point the Insurance Co. gets the house) ..
Various 'varations ' exist - in some schemes (I would call them scams) you take out a (high interest) lifetime mortgage which gives you some extra Pension .. Interest on the Mortgage is 'rolled up' and the house is sold when you die to repay the mortgage .. of couse you have been paying Interest on top of the Interest, so typically there is nothing left ...
NB> be carefull of the types that give you money and then charge you Rent .. not only is the rent 'upwards only' (i.e. increased every year) but when the money runs out you could end up homeless ..
2007-09-22 23:47:05 · answer #1 · answered by Steve B 7 · 0⤊ 1⤋
I agree with Steve B....
mmm, sell the property to a company who will let you rent it back off them! Then you don't have to move and will be able to pay the rent with the money you get from the sale!
OR, pay off lots of the equity, each year, as much as possible, by overpaying and then you will decrease the term and the overall interest.
Alternatively rent rooms out and pay this extra income into premium bonds or ISAS and then use them to terminate the mortgage early!
2007-09-23 08:56:35 · answer #2 · answered by My name's MUD 5 · 0⤊ 0⤋
I do have a sure fire way, do 14,990,000 lottery tickets bound to get a winner, why would you want to pay off the mortgage, sell the house, pay off what you owe, and live in heaven after all as a part time teacher you have already been to hell.
2007-09-23 06:48:25 · answer #3 · answered by Kenny 2 · 0⤊ 0⤋
You say you are healthy but forced to retire at age 64. if you are UK, you cannot be forced to retire. Last year new legislation came into force. Ok you don't automatically carry on working, your employers have to write to you asking if you wish to carry on work or retire, you write back saying you want to continue for 6 months, 1 year, or indefinitely and they either accept that, call you in for a meeting just to check you are competent etc. but they cannot force you out.
2007-09-26 10:24:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Look at your personal pension, if you have one, perhaps you could take the lump sum offered, which is usually about 25% of your total pension amount.
2007-09-24 15:21:22 · answer #5 · answered by daveyboy 1 · 0⤊ 0⤋
bank robbery
2007-09-23 06:22:25 · answer #6 · answered by Anonymous · 0⤊ 0⤋