Equity release

best way to think of it is as a mortgage where your estate pays back all youe missed payments as a lump sum when you die

Depends if it's income or extra capital you need.If you need income a lodger (out at work all day?), possibly weekdays only would bring you in up £7000+ p a tax free
If it's capital a personal loan with interest rates as low as they are would probably be better

Sound advice from NemosMum, michellehargreaves and others. My aunt took one out just for £30,000 and now owes £120,000. There will be nothing left for her son, but then it was him who persuaded her to do it anyway to bail him out of a short term situation. The only ones who gain is the company involved.

Suggest you tell the estate agent, in writing, to remove your details from their database. Did you sign anything saying you were happy for them to keep your details and keep contacting you? I don't expect so. But even so you have a right to ask them to remove them.
My hunch is that they don't bother much about details like Data Protection.

Don't touch equity release with a barge pole. The companies that offer this, are not doing so for charitable reasons.
Downsize if you can.

Victoria - DON'T DO IT! Go and see a solicitor who specialises in 'affairs of the older person' (not what it sounds like!) and get some proper advice.

It can be a good idea but it depends on your circumstances. Please seek the advice of an independent financial advisor

Not a good idea at all!

I have heard all sorts of horrible tales. I did meet someone in RL who was singing about how great it was (had just had a close call with death was buying an expensive car from me and DP), he did this to purchase the car and I honestly felt really guilty. Turns out he wasn't actually married to his partner and hadn't given a single though to how if he died first she would loose her home, but it happens to those who are married too.

I wouldn't want my mum to do this I want her to enjoy every penny she has if she needed money I'd hope she would ask me, before doing this it's not about the physical house or the money from it - I just wouldn't want to find (hoping it's not for a VERY long time yet, lost my dad 2 years ago at 61) that we would loose our mum and then not have time to do things properly and I've heard of stories where family members are kicked out on the street pretty sharpish, which is just too sad.

Very good advice.
I've also done the research and it's not a good idea.
Downsizing and maybe considering renting long term seems a better option.

You can re mortgage into old age now.........sadly some of us may have to. Equity release is expensive to get in to and out of.

Could you take a lodger, tax free income to be had there and very useful.

Equity release does sap the life out of you once you are in there is very little wriggle room.

Been there, done that, escaped. NEVER AGAIN.

Some very good advice above. It's a minefield. You said 'we' do at least have a driveway', which indicates you have a partner? You need to be even more careful if you have. My sister and her husband took equity release so they could travel, as my sister had been unwell and 'wanted to make hay while the sun shines'. When she passed away, a clock started ticking and my brother in law had to very quickly (and now realises his choice of property was a mistake) move, whilst he was still grieving and not really thinking straight. Otherwise, he would've quickly ended up with nothing. The deal they signed up for meant once one partner died, the equity release scheme came into effect, triggering a rapid reduction in the equity retained by my bro-in-law. Which he estimated would’ve reduced to zero within 12 months.

The problem is, where I live, if I downsize, I can't get anything compared to my current house which is small anyway. We do at least have a driveway for car, whereas if we move there doesn't seem to be anywhere except street parking places.

Probably stay here when all said and done.

Recently had estate agent to do a valuation and now they are pestering me all the time.
Equity release is probably left well alone then.

Be aware the interest of an equity release is accrued until the occupiers either go into a care home or pass away and as said it could amount to the value of the house. Please speak to an independent advisor and your family before you contemplate any equity release ad it's not for everyone.

Without prying too much into your finances, if this is a matter of a few thousand pounds; my aunt and uncle borrowed £10000 from their son and daughter in law ( only child), to buy a better car and have a bit of spare cash. Their son and DiL would inherit anyway, and it was almost like an interest free loan against the inheritance. Everyone was happy with the arrangement and no huge interest amounts accumulated.

"Lots of people do this, surely"

If that's true Victoria they certainly don't come on here and extol its virtues - I can't remember a single instance.

In addition to the rampant interest, if you decide a few years along the line that it's not for you, there are penalties to be paid.

Far simpler to just sell and down-price.

Why not sell, pay your mortgage and then rent?

You can choose a place to suit your budget and don't tie up your capital again? Just a thought.

It can stop you getting any benefits you may be entitled to, so think carefully what you do. For most people it is not a good idea.

Agree with HildaW, it would appear that you have other options.

A lot also depends on how old you are, the younger you are the less likely that you will gain any benefit. As stated, better to get independent advice.

Basic advice....avoid it like the plague!!

My parents released equity in their house to bring in some extra income in their declining years. In principle we (the offspring) had no problem, it was theirs to do with whatever they thought fit.

Within a year my father was diagnosed with lung cancer and died soon afterwards. My mother lived another eight years.

It turned out that the debt had piled up in those few years so that finance company took half the house when it was sold. I don't think things have improved very much since my parents died (seven years ago, now).

My advice would be to simply downsize, leaving yourself mortgage free.

As M0nica says, do get independent advice.

The problem with equity release is that the interest is rolled up and paid after your death and sometimes the accrued interest can equal the value of your house so that there is nothing for your son and daughter to inherit. It can also limit your ability to move later because if you sell your house and pay the interest that has accrued you may not have enough money to buy an alternative property.

As you are prepared to downsize, why not just do that and clear the mortgage and own your home outright without being left with financial commitments.

I would speak to Age UK. In the meanwhile download their Fact Sheet on the subject.
www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS65_Equity_release_fcs.pdf?dtrk=true