Getting Equity release, the hoops you have to jump through.

Like you I thought the money was yours to do with what you want. Surely once you sign the forms they have their guarantee of repayment so what's with all the red tape? I was considering this but it sounds very complicated. I would also like to know if anyone has had the dosh without all the formalities.

No problems at aĺl in 2002,the full amount was transferred to a current account. This was an interest only mortgage repayable on death of final account holder or moving house.Neither has occurred yet !!

I took out a lifetime mortgage last year and said I wanted the money for renovating my flat and my daughter's house and possibly a holiday at a later stage. No hassle and money paid in my current account on completion. No intrusive questions from lender!

How interesting. I could have understood concern if we were borrowing a lot of money for a big building project and there was a fear that if it went wrong, the value of the house would fall below the value of the loan. But that just isn't the case.

justwidowed our original plan was an retirement interest only mortgage, but the equity release scheme offered a lower rate of interest, a longer period of fixed interest - at a time when there are comcerns about interest rates rising and we do not plan to roll the interest up but pay it vountarily every month - and of course if we miss a payment, for any reason, there will be no penalty, it will just get rolled up.

We took out what they call a lifetime mortgage with Legal and General in 2019. Interest rate at 2.9% we pay the interest monthly and the capital can be repaid at any time during our lifetime or when we die. There could be an early repayment penalty if interest rates fall. It can be transferred to another property if we decide to move, provided the value of the new property is greater than the loan.
We needed the money to re-render our property after poor workmanship meant the original failed. We also planned a big holiday to Australia with the whole family.
The company checked our finances and sent a surveyor to value our house. We had to sign a form in front of a solicitor to say that our family were not forcing us to do this and hey presto money in the bank, no questions asked.
Please pm me if you want more detail.

PS interest rate is fixed for life.

Thanks LauraNorder, we are with the Nationwide and all the details of our equity release are much as your RIO with Legal and General, including the interest rate, which is fixed, but discounted for the first 10 years. We will be paying the interest.

We anticipate that we will only have the ER for about 10 years at most as by then we will probably need to downsize and will be selling the house and will repay it. One of the reasons for the extension is to make the house more saleable when that downsizing moment comes.

It is just all the palaver over the extension that is getting our goat, particularly when the loan itself is not large and the loan to value percentage is tiny. If we have full planning permission and, in our case, Listed building consent, and the materials being used are all standard materials, no thatch or hay bales, sheeps wool or fairy dust, and that applies to the main building as well, what else is there to worry them?

Everything else relating to the ER is going fine.

I took £125k a few years ago and it was extremely easy and straightforward. They didn't care what I wanted it for either. Mine is also legal and general.

In 2016 I took out equity release with Aviva to fund an extension. They did not require estimates/quotations etc of sight of the plans. Perhaps things have tightened up a little since then. One thing I do not think.is right is the extent of redemption charges to port the release elsewhere. I also think that your provider should be obliged to move you onto their best going rate at minimal cost.