[Finance] Equity release.

[Binney on acid]

I know it doesn't suit everyone. I'm not remotely interested myself. However, my best mate is. He's asked me for recommendations. He's 67 and still works part time. He's never earned a decent salary, and never had any cash, because on the rare occasion his wife got a job, she couldn't keep it for more than a couple of weeks. He's mortgage and debt free, owns his own flat and has no dependents. No relative to inherit his property upon his demise.
He wants to go to some observatory in Spain, and do some great things whilst he's still got his health and faculties. I think it's a great option for him, but don't want to recommend him to a bunch of shysters. Any sensible recommendations, please. He's left me some 'Key' brochures to look at, but I'm out of my depth here.

 

[dazzer6666]

Calling @Steve Foster ?

 

[AlbionBro]

I would say it's a no go area, I would also say I am happy to be a dependant of his.

 

[jezzer]

Quite happy to help him - I’m a qualified equity release broker who is also a member of the equity release council and a qualified financial adviser too - my company charge just £695 broker fee too, whereas the key retirement solutions charge on average £1795 , please dm me and I’ll send you my contact details and then he can contact me for a no obligation chat if he wishes. It’s not a product to be taken out lightly but with correct advice and all the minuses as well as the pluses fully covered, I’m sure an informed decision can be reached.

 

[Sirnormangall]

Equity release is highly regulated nowadays and any adviser is required to have specific qualifications. So if you speak to the right people ( see Jezza above) you’ll be fine.

 

[phoenix]

Is the flat a leasehold?

Ok if it is a leasehold flat there are several, obstacles in the way that are time consuming and expensive i know someone who has recently done this and it took quite a long time for the whole process.
Deed of variation being a major problem if its a leasehold.
Got to say now its all done he is very pleased.

Also i would add that's a great price from Jeezer

 

[Live by the sea]

I know it doesn't suit everyone. I'm not remotely interested myself. However, my best mate is. He's asked me for recommendations. He's 67 and still works part time. He's never earned a decent salary, and never had any cash, because on the rare occasion his wife got a job, she couldn't keep it for more than a couple of weeks. He's mortgage and debt free, owns his own flat and has no dependents. No relative to inherit his property upon his demise.
He wants to go to some observatory in Spain, and do some great things whilst he's still got his health and faculties. I think it's a great option for him, but don't want to recommend him to a bunch of shysters. Any sensible recommendations, please. He's left me some 'Key' brochures to look at, but I'm out of my depth here.

Sell up & move to somewhere cheaper is a better idea than any of these equity release schemes !

 

[Weststander]

Free advice and a calculator from this charity.
https://www.stepchange.org/how-we-help/equity-release-calculator.aspx

 

[Weststander]

Sell up & move to somewhere cheaper is a better idea than any of these equity release schemes !

This.

 

[sparkie]

Equity release is great if you have no one to inherit from you.

If you have got someone to pass an inheritance to then, if it were me, I'd get a mortgage or a 2nd charge ( Shawbrook Bank offer this providing it is paid off before age 85 ).

 

[Lenny Rider]

Unfortunately in my line of work, almost every client’s family I’ve looked after have a tale of woe about Equity Release.

As a side issue, but relevant, my mate’s late father was friends with Eddie Large, Little and Large were for a short time in the late 80s the advertising ‘face’ for a prominent Equity release scheme, (9 million viewers on a Saturday tea time gets you a bit of clout) it was only when it was flagged up to both Syd and Eddie what the process involved that they got their agents to pull out of the deal, despite it being extremely lucrative.

 

[AlbionBro]

Unfortunately in my line of work, almost every client’s family I’ve looked after have a tale of woe about Equity Release.

As a side issue, but relevant, my mate’s late father was friends with Eddie Large, Little and Large were for a short time in the late 80s the advertising ‘face’ for a prominent Equity release scheme, (9 million viewers on a Saturday tea time gets you a bit of clout) it was only when it was flagged up to both Syd and Eddie what the process involved that they got their agents to pull out of the deal, despite it being extremely lucrative.

They are clearly men of substance, perhaps Eammon Holmes should pay his dollar back to a worthwhile charity.

 

[Deleted member 37369]

Sell up & move to somewhere cheaper is a better idea than any of these equity release schemes !

And you're qualified to give this advice ... how?

The individual in question lives in a flat ... we don't know the value. It's not like he lives in a big expensive house where it might be easier to trade down. But then moving itself has considerable costs and stresses. He ... or anyone else might not want to leave a property that they might have spent many happy years in. Yes, it might be a consideration ... but that's why professional advice is needed so that the person in question can make an informed decision from all the available options.

'My mate down the pub reckons' really isn't the best way to make a huge financial decision like this!

 

[Deleted member 37369]

Unfortunately in my line of work, almost every client’s family I’ve looked after have a tale of woe about Equity Release.

As a side issue, but relevant, my mate’s late father was friends with Eddie Large, Little and Large were for a short time in the late 80s the advertising ‘face’ for a prominent Equity release scheme, (9 million viewers on a Saturday tea time gets you a bit of clout) it was only when it was flagged up to both Syd and Eddie what the process involved that they got their agents to pull out of the deal, despite it being extremely lucrative.

The 'home income' type schemes were very different to the equity release schemes that are available today.

 

[Live by the sea]

Professional advice should be avoid equity release schemes !

 

[Deleted member 37369]

Equity release is great if you have no one to inherit from you.

If you have got someone to pass an inheritance to then, if it were me, I'd get a mortgage or a 2nd charge ( Shawbrook Bank offer this providing it is paid off before age 85 ).

A mortgage or 2nd charge would involve monthly repayments - unlike an equity release mortgage. The OP stated that the person in question has 'never earned a decent salary'. So how would having to make monthly repayments on a loan help him?

 

[Deleted member 37369]

Professional advice should be avoid equity release schemes !

You don't know what you're talking about!

 

[WATFORD zero]

You don't know what you're talking about!

To be fair, this isn't limited to equity release schemes

As in everything, take professional independent advice and totally ignore all @Live by the sea's accounts and you won't go far wrong

 

[ac gull]

our old neighbour did this in their 70's - not entirely sure how much, think only 25k or so spent on cruises etc
lived to 99 - when house was sold for best part of 300k was nothing left for family to inherit
compound interest adds up over time

 

[WATFORD zero]

our old neighbour did this in their 70's - not entirely sure how much, think only 25k or so spent on cruises etc
lived to 99 - when house was sold for best part of 300k was nothing left for family to inherit
compound interest adds up over time

Which is why it is very different if you want to take equity release and leave an inheritance. But It was very clearly stated in the OP that this wasn't the case, which is why the situation you describe would be far better than his current one.

If it was, I would be as wary of equity release as yourself and some others on here are