Cycling UK Forum

Anyone aware of a ERS that is safe and you don't end up renting your own house back from the new owners within a very short time of taking it out.
Martin Lewis the money expert has stated that until he is aware of a safe scheme he will not offer advice on any of them.
Do you know better !
It would just be a shame to pop my clogs without enjoying the fruits of our labours over many years in buying the house. Still if we do the kids will be having a great time.

I would have thought the best idea is to remortgage, buy an annuity and use some of that to service the interest on the mortgage.

If you can't make that work then presumably equity release won't work either for exactly the same reason.

annuity rates are at an all-time low

531colin wrote:annuity rates are at an all-time low

Exactly.

But imagine you were a company offering such a service. How would you cover your costs?
Behind the scenes all the same old mechanisms are at work...

Banks and building societies generally wont lend you money as a normal mortgage when you are retirement age. When my 80 year old Ma in Law wanted to move near us and the new flat cost more than the one she was selling we arranged a lifetime mortgage through Aviva to cover the extra cost. The interest rate on what was borrowed was 7%. They wont let you overstretch yourself and they guarantee you will never lose your home through the debt exceeding its value. I trust them far more than any broker that peddles this stuff. The, alternative is to downsize and release the cash that way.

Al

al_yrpal wrote: ..... alternative is to downsize and release the cash that way.

+1

Sell your house, and downsize.
That is what we intend to do, there's no point in rattling around in a three bedroomed house with a huge garden when you can fit very nicely into a one bedroomed bungalow.

Mick F wrote:Sell your house, and downsize.
That is what we intend to do, there's no point in rattling around in a three bedroomed house with a huge garden when you can fit very nicely into a one bedroomed bungalow.

Where will you keep your Mercian!

.

rjb wrote:

Mick F wrote:Sell your house, and downsize.
That is what we intend to do, there's no point in rattling around in a three bedroomed house with a huge garden when you can fit very nicely into a one bedroomed bungalow.

Where will you keep your Mercian!

As long as I have breath and strength, I will continue to cycle and also to live here ........ huge garden and woodland that Mrs Mick F has little or nothing to do with. If I pop my clogs, she's outa here!

If I'm not fit enough to live here, I won't be fit enough to ride a bike. What would happen to my beloved Mercian, I dunno, but please bury me with it.

As a rule-of-thumb, if something is given a posh name, it's almost certainly dodgy, if not totally bent.

A topical example is quantitative easing AKA printing money without even bothering with paper.

You only need a one-bedroom house for a Mercian.

The bed can go in the shed.

Sell he house to one or more of the kids. Then pay them enough to cover the mortgage and costs out of the cash.
When you get to a certain level of money left you are then living in rented accommodation so might be able to get benefits.
Plus will avoid the house being sold to pay for your care package.

When you do pop your clogs then one of them moves in for the required length of time to avoid the higher levels of tax.

You need much better financial and legal advice than you might expect to get from commission-driven salespeople at banks etc, or, for that matter on a cycling forum. The best person to see first would probably be a decent fortune teller who could accurately forecast when you would need an undertaker. Few, if any, of these ruses work for ordinary people eg AFAIK, you can't get housing benefit to cover rent paid to a close relative. I've no doubt there are ways round all this for anybody who can pay for the right advice, but unless you are stinking rich, the cost of the advice will wipe out any benefit and then some, always assuming that you can find somebody to take on your business if you are not a multi-zillionaire.

I should have added that you need a solicitor that specializes in property transfer. I would never offer specific financial advice but only give some ideas that may work out.