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Home equity release schemes
go by a variety of names.
You might
know them as "equity home release", "equity house release",
"lifetime mortgage", "equity release mortgage" or "home
reversion plan.
How the figures look with an equity release
scheme
With the conventional equity release services
offered by financial services companies you may be left with nothing. This story details the Which? report that
calculated if a 60 year-old borrowed £80,000 on an
average Lifetime Mortgage it could end up costing £256,570 by
the time they were 80 and £343,350 by the time they were
85.
The problem with, a home reversion plan, is that generally they
involve selling your house to your lender for no more than 50% of its
market value.
This story details another equity release tale that had a
disastrous outcome.
What are the alternatives? Can you release
equity without paying through the nose for the privilege?
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Sell your house
Of course there's a big difference in motivation
between selling your house because you are moving abroad or divorcing
and doing it for financial reasons.
In the end only you can decide what is the best
solution for your circumstances. -
Sell and move...
Selling your house by conventional methods through
an estate agent is one alternative. This can take time, but if you're
not in a rush this could be your best option to get the best possible
price for your house.
And then of course, you have to move house. Of
course you may want to in any event. Perhaps you'd like to downsize?
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