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By avtur3
FLYER Club Member  FLYER Club Member
#1910969
Now I know this is going to elicited a ton of comment ...

So, capital rich (ish) cash poor entering the later years in life, what are the options?
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By Miscellaneous
#1910976
Beg, borrow steal, and only then if starving...equity release.

From what I (think) know of your circumstances, it's very, very unlikely to be the most financially prudent for you.
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By Charles Hunt
#1910987
It wouldn't be offered if they didn't make more out of it than you did.

I sold the family home, bought a small flat to live in and a rental property to provide income.

I also ended up with an inexpensive property in northern Italy, and this is the best solution. Buy somewhere you like in rural Continental Europe. Low capital cost, peace, tranquility and overall much better quality of life than in overcrowded over-priced SE England.

On a recent short spring walk across my local valley I found I needed the word 'bliss'. Can't recall needing it before.
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By kanga
#1911029
Charles Hunt wrote:
> It wouldn't be offered if they didn't make more out of it than you did.
>
> ..

I'd cynically add: it would not be (presumably expensively) promoted with regular TV ads if the various promoters were not expecting to make a LOT more than the client (/victim) :?
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By Rob P
#1911035
I would point out that those nearing the end of their days without worthy relatives of any sort actually couldn't give a flying fig if the company makes money from providing access to some of the value tied up in their home without the hassle of relocation.

Rob P

Footnote. The above does not apply to me with a wife guaranteed to survive me. Nor am I a financial adviser. Just one who sees how age changes attitude to the money you can't take with you.
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By LowNSlow1
FLYER Club Member  FLYER Club Member
#1911049
Charles Hunt proposed a practical solution.

My only additions, from bitter experience, would be;
1. Don't buy a flat in a block with substantial service charges
2. Check the ground rent of the property
3. Buy as local as possible so you can do repairs instead of a £50+/hour tradesman
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By Miscellaneous
#1911051
Rob P wrote:
> I would point out that those nearing the end of their days without worthy
> relatives of any sort actually couldn't give a flying fig if the company
> makes money from providing access to some of the value tied up in their
> home without the hassle of relocation.

Indeed. :thumright: That's why I qualified my post by referring to my understanding of the OP's circumstances. Equity release works for many an individual. :D
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By Charles Hunt
#1911201
Forgot to mention, the other option is to let out a room.

Apparently £600 a month for something small and grotty in Brighton at the moment.
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By TheFarmer
FLYER Club Member  FLYER Club Member
#1911748
Rob P wrote:
Footnote. The above does not apply to me with a wife guaranteed to survive me.


Your driving and flying aren’t that bad are they?!
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By PeteSpencer
FLYER Club Member  FLYER Club Member
#1911755
Charles Hunt wrote:Forgot to mention, the other option is to let out a room.

Apparently £600 a month for something small and grotty in Brighton at the moment.


I don't think I could bear to have strangers constantly traipsing around my house.

In the eighties and nineties we housed two foreign language students most summers.

That was bad enough but at least we knew they were going home after three weeks................ :lol:
By avtur3
FLYER Club Member  FLYER Club Member
#1911792
skydriller wrote:Errr... off of the top of my head:
Sell big house, buy small house, live off of the difference??? :cheese:


Yes, we know full well that is the obvious answer, but there are very strong "emotional" reasons why that isn't appropriate at this moment in time. Downsizing will be the route we want in about ten years time, in practical terms what we need is a cash advance on the downsizing ... And surprisingly it appears that there are products which can deliver this which do not incur huge financial penalties and which leave us in full control.

The term 'equity release' has attracted some really bad press for some dreadful products that were introduced some years ago, and sadly some of those still exist. However, there are other products that deliver equity release in an rather different way.

So, if I say I'm interested on a remortgage the chances are no one would bat an eye lid.
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By Miscellaneous
#1911801
avtur3 wrote:So, if I say I'm interested on a remortgage the chances are no one would bat an eye lid.

True, but that would be because that is a different product, with entirely different cost (and control) implications. What you did ask about was equity release and unsurprisingly that's what folks responded to. :wink:
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By avtur3
FLYER Club Member  FLYER Club Member
#1911806
Miscellaneous wrote:
avtur3 wrote:So, if I say I'm interested on a remortgage the chances are no one would bat an eye lid.

True, but that would be because that is a different product, with entirely different cost (and control) implications. What you did ask about was equity release and unsurprisingly that's what folks responded to. :wink:


And there in lies the problem ... remortgage is equity release ... the problem is that people are drawn in by product descriptions which have no clear ( and universally accepted) definitions.

Some "Equity release" has a very well deserved bad reputation because when you look at it the t's&c's are just dreadful. The reality is that equity can be released in many different ways, some of which are quite acceptable.

Yes, I asked about equity release, but as has been clearly identified, the means to achieve this are many and varied, and some may NOT be the rip off they are pre judged to be.