Has anyone taken out an Equity Release plan?

Might be worth it now as the state is going to take your house from you anyway.

heard a radio programme where an elderly couple took equity release ,they ended up owing the company more than the value of their house,I think you have to be very careful about the company and the small print before signing anything .Not much use if you leave your kids with a big ever growing debt when you die

I think you have to be very careful which scheme you use. Some are a rip off but there are some reasonable ones around. A relative of mine was actually given more than the house was worth. When she died they couldn't reclaim any money because it was her estate.

You can't leave your kids with a debt. A debt is not tranferable

They have always been a bit of a rip-off; but now, if the new rules come in, it might be worth doing, so you can eat, drink and be merry; or even give it to your children, because if you need care they will not get it!

Tried for Equity Release upon widowhood. Needed to put the house right from a bit of neglect, adaptation and wear and tear from wheelchair. Took advice from StepChange via WhichMoney, consumers' magazine. Endured a (then) whalloping £400 "survey" fee so checked the manhole covers, got a ladder ready for the roof, pulled down the loft ladder and held my breath! What happened? Nothing at all was inspected or examined! I received a simple valuation such as I could have obtained free, online, via Nationwide or Halifax. There were errors in one calculation, too. Eventually, after yards if paperwork to ensure I was not involved in moneylaundering, it transpired that the money would only be released in stages to suit the lender, and the whole to be repaid eventually, upon my death, at 5% p.a, way above the prevailing interest rates at that time. Avoid! These predators are fleecing the needy and adding to the misery of nursing home fees when what is required is cost effective mitigation of unforeseen need.

Is there no other avenue? I would avoid equity release if you can,not many horror stories out there. Failing finding no other way to raise money, could you downsize?

Personally not something I'd do as I've heard so many negatives from people doing this.

mumofmadboys debt doesn't die with you,its recoverable from your estate ..or it is here in Scotland .

Walk away NOW!

It's the same in England paddyann. If a charge (mortgage or loan) is legally placed on a property, it remains legally active until its fully discharged and so will be reclaimed as part of the estate of the deceased.

I can only say , don't do it unless you are desperate.

I have heard nothing but bad about equity release so don't do it ...

I am with Nanabilly I also have heard nothing good about it. If you are desperate, please do your homework fist, reading all of the small print.

There was an episode of Money Box Live on Radio recently. You should look at their website.

I feel that they are a dangerous concept - and your children will be left with no home and/or potentially pay-off fees. I agree about potential downsizing, or perhaps your kids could take it off your hands and pay you a monthly allowance.

Whitewave. Make no mistake the state will have your cash, be it in bricks and mortar/in the bank, if you ever get to need social care.

mumofmadboys, beware, if there is money in the estate all debts are repaid first before any legacies are paid out. The old wives tale that debts cannot be passed on is just that, an old wives tale. True if there is no money in the estate the creditors cannot chase the family. But, all debts must be repaid if the money is there.

I speak from experience!!!

My husband took out a personal loan (unknown to me), which he then invested in his business. Even though this was essentially a fraud as he lied to the company who lent him the money and he used it for business purposes, it had to be repaid out of the various insurance/pension/investments he had.

The so called Dementia Tax (having to sell your home if worth over £100k) to pay for social care was NOT in the Queen's Speech so won't be implemented in this Parliament. It may never be brought in. Don't go with equity release just in case it does! Equity release is almost always a con.

When my parents went into residential care home a couple of years ago we had to sell their house to pay the fees . Equity release can be dodgy but with the right company and advice it is a way of releasing capital to spend now. Always best to speak to an independent financial adviser

I agree, don't do it. I've never heard a good word said about Equity Release apart from the mouths of the actors on TV. I think SarahHelen is right, if you ever need care, whatever you have will be taken. I downsized and gave my sons deposits for homes because unless I am very fortunate there will be little left for them after I'm dead. I think downsizing is the way to go.

There are many types of plans so you need to discuss this with an expert, possibly someone recommended by Saga or Choice magazine who have no connection to any company providing plans. My sister did this quite successfully.

However such a move is not right for everyone. And that is where the advice from an expert can be so helpful in providing the info that enables you to firstly decide whether to go ahead or not and only then to pick the right plan.

Although Saga is seen by many as on the older person's side.....they ARE in the financial markets themselves so perhaps not as independent from the product as would seem.

In a similar vein, I wonder about the houses you see for sale for over 60s only, much cheaper than market value. Does the buyer retain any interest in the property for family to inherit or does the company selling these keep all of it when the buyer dies? It seems to be a bit like equity release.