[Finance] Equity release

[Deleted member 37369]

I was working in the Lloyds Private Banking UHNW office in Mayfair in the early 90s…..got a call from the receptionist telling me ‘some chap is up here asking if he can have a look round……he was walking past and saw the brass plate on the door’

‘Who is it’

‘Andrew someone…..Longman or something? Says he now works for the group’

‘Do you mean Longhurst ? ‘

‘Ah yes, that’s it’



Gave him a quick tour, seemed a decent enough bloke.

I should have asked ... did he have Shiela Campion with him (his PA ... cough cough)!!!

 

[Weststander]

I was working in the Lloyds Private Banking UHNW office in Mayfair in the early 90s…..got a call from the receptionist telling me ‘some chap is up here asking if he can have a look round……he was walking past and saw the brass plate on the door’

‘Who is it’

‘Andrew someone…..Longman or something? Says he now works for the group’

‘Do you mean Longhurst ? ‘

‘Ah yes, that’s it’



Gave him a quick tour, seemed a decent enough bloke.

I can’t remember him.

I never worked in banking or The City, but because I’m inquisitive (nosey) I recall …. Lord Boardman, Jeremy Morse, the Bevan’s.

Envying the Kent pad of Robin Leigh-Pemberton.

 

[dazzer6666]

I should have asked ... did he have Shiela Campion with him (his PA ... cough cough)!!!

Nah, was on his own…….sadly

 

[dazzer6666]

I can’t remember him.

I never worked in banking or The City, but because I’m inquisitive (nosey) I recall …. Lord Boardman, Jeremy Morse, the Bevan’s.

Envying the Kent pad of Robin Leigh-Pemberton.

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I met Sir Jeremy a couple of times, and Brian Pitman several times (Pitman was the most respected CEO I recall, really ahead of his time in his thinking), both really nice blokes. Lloyds seemed to fall apart after the TSB ‘takeover’

 

[Deleted member 37369]

I met Sir Jeremy a couple of times, and Brian Pitman several times (Pitman was the most respected CEO I recall, really ahead of his time in his thinking), both really nice blokes. Lloyds seemed to fall apart after the TSB ‘takeover’

The Co-operative Bank were supposed to takeover what was to become the TSB Bank in 2013/14 I think - but it all went wrong - hence LBG stepped in! I worked for TSB briefly in 2014 ... I had a frustrating 6 months or so there and then decided it was time for me to get out of banking/financial services for good having started at Nat West Bank as a 16 year old in 1978!!!!

 

[dazzer6666]

The Co-operative Bank were supposed to takeover what was to become the TSB Bank in 2013/14 I think - but it all went wrong! I worked for TSB briefly in 2014 ... I had a frustrating 6 months or so there and then decided it was time for me to get out of banking/financial services for good having started at Nat West Bank as a 16 year old in 1978!!!!

1984-2020 was all I could manage……

 

[Weststander]

The Co-operative Bank were supposed to takeover what was to become the TSB Bank in 2013/14 I think - but it all went wrong - hence LBG stepped in! I worked for TSB briefly in 2014 ... I had a frustrating 6 months or so there and then decided it was time for me to get out of banking/financial services for good having started at Nat West Bank as a 16 year old in 1978!!!!

One of my brothers started at NatWest Castle Square, Brighton in 1974, on £8 a week!

 

[Weststander]

1984-2020 was all I could manage……

It was worth it. Retiring at 55, when you’re not enjoying Albion away wins, spending much of the year holidaying.

 

[Deleted member 37369]

One of my brothers started at NatWest Castle Square, Brighton in 1974, on £8 a week!

Mine was New Milton in Hampshire - September 1978. I was on a bit more money than £8 a week ... it was certainly over £1,000 pa !

Happy days when it was great working in a bank branch with loads of staff ... and socialising.

Back in the day if it I was on door duty for the week (unlocking at 9.30am and locking back up at 3.30pm) ... I also had to make sure the red and black ink wells were filled in the managers office and his blotting paper changed!!!!

 

[heathgate]

It's a no brainer unless interest rates start to exceed the annual increase in the value of your property..... but I may do it, but only when I am 65-67... any earlier and the compound interest start to become a bit of a burden.... you can take 120k for example, but only take it in 2 x 60k chunks as an addition to your monthly income,... £500 pm for 120 months.. then repeat.... in those years, your property has probably increased in value by 7% per year at least, if not more.

It is now regulated, has been for some years, the system works for the lenders and the borrowers now.... note: the constant and consistent need for new housing will continue to drive prices upwards.

Sent from my SM-G950F using Tapatalk

 

[dazzer6666]

It was worth it. Retiring at 55, when you’re not enjoying Albion away wins, spending much of the year holidaying.

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54

 

[theboybilly]

I've just remembered that a friend of ours has rented out her house for something like £800 a month (mate's rates I think) She bought a static caravan in Rye and lives there for 50 weeks but has to get off the site for a fortnight in January (I think) So she goes away for a cheap holiday, no biggy she says. I don't know how that would work for the OP though. Some of those static caravans are top-notch if that's your thing

 

[dazzer6666]

I've just remembered that a friend of ours has rented out her house for something like £800 a month (mate's rates I think) She bought a static caravan in Rye and lives there for 50 weeks but has to get off the site for a fortnight in January (I think) So she goes away for a cheap holiday, no biggy she says. I don't know how that would work for the OP though. Some of those static caravans are top-notch if that's your thing

Mate of mine sold his ‘normal’ house for a 3 bed ‘lodge’ (new, built to own design from a range of options) on a local park (lovely location too). Lodge cost was less than half the house sale proceeds but about the same size. The gap makes sense - the site closes for one month per year, that way none of the lodge owners pay any council tax at all as they are ‘holiday homes’ (they decamp for the month to Spain where they have a place).

 

[Carlos BC]

Is it businesses/advertisers doing the asking? Avoid like the plague.

You only need to deal with the pension company or current IFA to take the 25%. No need for a JCL to get their grubby paws on some of the money.

Be aware if you still intend building your pension fund through contributions, that taking the lump sum heavily restricts future contributions.

Taking the 25% tax free cash from a pension doesn't restrict the amount you can pay into a pension and still receive tax relief, the limits remain the same. If you go beyond this, or take any money from your pension that is regarded as income, then the amount you can contribute and still receive tax relief is dramatically reduced so care does need to be taken.

I will be will be running a webinar on 28th June at 11am on UK Pension Basics. Not a promotional webinar, literally is the basics of UK pensions, free to attend ( there is a slide showing how you can donate to Care for Veterans but this is optional). I would guess posting link on here directly it on here might be against rules so if anyone is interested please DM me and I will send over details.

 

[Weststander]

Taking the 25% tax free cash from a pension doesn't restrict the amount you can pay into a pension and still receive tax relief, the limits remain the same. If you go beyond this, or take any money from your pension that is regarded as income, then the amount you can contribute and still receive tax relief is dramatically reduced so care does need to be taken.

I will be will be running a webinar on 28th June at 11am on UK Pension Basics. Not a promotional webinar, literally is the basics of UK pensions, free to attend ( there is a slide showing how you can donate to Care for Veterans but this is optional). I would guess posting link on here directly it on here might be against rules so if anyone is interested please DM me and I will send over details.

Sorry, yes you're right. I was thinking about income drawing down from the 75%.

 

[southstandandy]

Simply put, there are far better ways of raising some capital if you're homeowner in your retirement years. Equity release is only really for the desperate but if your willing to give much of your estate to one of these types of lenders then knock yourselves out.

 

[kevo]

It's a no brainer unless interest rates start to exceed the annual increase in the value of your property..... but I may do it, but only when I am 65-67... any earlier and the compound interest start to become a bit of a burden.

This is the other point to bear in mind - don't do it too early, just when you really need to.

 

[Live by the sea]

Mate of mine sold his ‘normal’ house for a 3 bed ‘lodge’ (new, built to own design from a range of options) on a local park (lovely location too). Lodge cost was less than half the house sale proceeds but about the same size. The gap makes sense - the site closes for one month per year, that way none of the lodge owners pay any council tax at all as they are ‘holiday homes’ (they decamp for the month to Spain where they have a place).

I don’t think you need to go as extreme as downside to living in a caravan park ! Perhaps you could rent a bedroom out or Airbnb once a month if you house is in a reasonably desirable area.

 

[Brighton1]

By and large it's a really poor way to release some cash and could cost you far more than you envisage in the long term.

If it's possible the best way of releasing some capital would be to downsize and move to a smaller property and realise some extra capital that way.

The only winners with Equity release are the companies involved in pushing such schemes. Beware.

I'd like to understand how you came to your conclusion. So, if someone loves where they live you think it best for them to move to a new home where they may not be happy when they have a no risk option of not being unhappy. Equity release rates are fixed for life so, at the outset you will know exactly what your balance will be throughout the whole term. I don't get your logic.

 

[Brighton1]

I'm a qualified lifetime mortgage advisor, if anyone wants to PM me a question I'm happy to answer.