Thank you for this video it has helped me, I’m 70 & my X partner/ husband has left the home, the home is in both our names & I paid the mortgage off several years ago, I want to stay in the home, so trying to find a way to pay him his share. Thank you again for this video …Mx🙏🏻
Family members are like vultures when you get old. They often spend their inheritance before you've died. Tell your kids they are getting nothing when you go, is my advice.
So true, sod the bloody kids or extended family, they’ll have to make their own way in life and learn the hard way, just like I had to. I’m thinking of taking out equity release on my fully paid up home so that I’ll have some extra money while still being able to live in my property until the day I die. I don’t care what happens to the property once I’m dead.
That's why these are so heavily regulated...because that could potentially happen! The equity release companies mitigate this by giving a relatively low loan-to-value, but even so, it's a reality that your beneficiaries could face, in which case they would need to find the excess from elsewhere.
Don’t be a mug. They will end up owning your house for a fraction of its value when the interest is compounded. If you have no-one to leave your estate to it might be worth considering if you’re desperate but the sale of your house could fund good quality private care rather than a council care home. Stay away from these bloodsuckers. These schemes are not designed for your benefit. This lady showed very clearly that with the interest being compounded it’s not long before the debt is unable to be repaid so goodbye house.
You don’t know much about equity release at all. The property will always remain yours to keep for your whole lifetime without having to pay back a single penny during that time either. Who cares if the company profit from your property once you’re dead. You cannot take your property to the grave with you. It’s only a problem if you have beneficiaries you wanted to leave the property to.
@@Stringbean421 You are saying the same as I did however, it may be your house but you can’t sell it. Early redemption penalties make that a non-starter. The maximum advance is around 60% which is not a bad deal when the company comes to sell it, plus the usual average increases in property prices. These schemes were devised because they are so profitable. The adverts make it look as though they are doing you a favour when the exact opposite is true. I would also hazard a guess that you are connected to this industry. Also there seems to have been an increase in the number of firms that offer advice for upwards of £1800, no money just advice. Are there really that many mugs out there?
@@johncrosley1 You can sell your house any time. Yes, there are early penalty fees but that is dependant on who your money lender is. Some of them let you be free of penalty charges after five years. You can also transfer the equity loan you have from your property to the new property if you so wish. The loan companies are happy to do this as well. As for the advisors you mention, they are all free, they get paid by the lender. People need to make sure they choose an advisor from the Equity Release Council. Look them up online. Even the survey is paid for by the lenders, all you pay for is your solicitors fee.
@@johncrosley1 The lending company do not sell your house, they have no right. The property deeds are always in the hands of the owner. Remember, this is just a loan you are taking out, a loan called 'Lifetime Mortgage, but it's still just a loan. Your estate sells the property upon the death of the property owner and the lending company gets first bite of the cherry out of the proceeds of the sale because they have what is known as a 1st Charge on the property. Anything remaining, the estate keeps.
@@Stringbean421 Since you appear to know so much explain this to me. The adverts say the property is yours until you die or move into long term care. A couple I knew took equity release. He has since died so she carried on living in the house. She has now moved into a care home, is still alive so there is no estate or executors to dispose of the estate. Under the terms as I understand it the lender will now sell the house and any surplus passed on to the widow. Correct me if I’m wrong.
Hi, is the interest always charged on the initial loan value or is the interest charged on the value of the property? For example, house value 200,000, loan value 50,000, interest rate 2.9%. Would the interest be charged on the 200,000 house value or the 50,000 loan?
@@OliviaFenion thanks for your response, my family member has been charged interest fixed at 2.9% on the home value, instead of the loan value. The lifetime mortgage was started in 1999 with Aviva (formerly Norwich Union). Do you think they'd have a good case with FCA/financial ombudsman?
@@saulwest8254 That's really strange, because the house value will be constantly changing. I would definitely have a look at the original mortgage offer to double check exactly what the terms were at the time - I was reading just this week about a family who took out something similar years ago and realised only now that they had signed 75% of their property over to the lender without realising! In the first instance, have a look at the original offer and if they are still around, speak to the original mortgage broker. Your family member should have been given a Suitability Letter outlining exactly what was recommended and why. Failing that, it would be worth a chat with the lenders themselves (you can request a copy of the offer from them if you don't have it) and then with the FCA/ombudsman.
If you didn't realise, I recommend you go back to the person who sold you the mortgage and have a conversation...by law they have to explain fully exactly what this mortgage is and the implications for you later on. If they didn't do that, you have every right to go to the ombudsman/FCA to make a complaint. x
Hi Olivia, I'm in the process of doing CeRER and this has explained things very clearly. Great job. I'm looking for a mentor, are you interested? Any help you can give will be welcomed.
Hi Teddy, Thanks for this comment and I am so glad you found the video helpful! At the moment I am unable to help you - mainly due to being 8 months pregnant with my first child, so the rest of this year is very much up in the air! - but if you think of anything that would make a useful video that you want to know more about, just let me know and I can certainly do that. Good luck with passing your CeRER, I hope it all goes well! :) Best wishes, Olivia
@@OliviaFenion Hi Olivia, thank you for taking the time to respond. Firstly congratulations i hope all goes well with the birth of your first child. I'll have a think and let you know. To be honest I saw your video about paying off your mortgage early and I recently started doing that however i intend to set up a spreadsheet to record my progress. I aim to pay off my mortgage 6 years early. Take care keep up the great work
Have you come across an Equity Release mortgage before?
Never heard of it before, good info.
Thank you for this video it has helped me, I’m 70 & my X partner/ husband has left the home, the home is in both our names & I paid the mortgage off several years ago, I want to stay in the home, so trying to find a way to pay him his share. Thank you again for this video …Mx🙏🏻
Good illustration to explain the concept! ❤
Impeccably explained with supporting examples. Thank you Olivia.
Very clear explanation and I’ve been working in financial services for 30 years
That is very kind, thank you! :)
Excellent video. Very helpful. Thank you
Very well explained thanks!
Family members are like vultures when you get old. They often spend their inheritance before you've died. Tell your kids they are getting nothing when you go, is my advice.
So true, sod the bloody kids or extended family, they’ll have to make their own way in life and learn the hard way, just like I had to. I’m thinking of taking out equity release on my fully paid up home so that I’ll have some extra money while still being able to live in my property until the day I die. I don’t care what happens to the property once I’m dead.
@@Stringbean421 the entirety of my estate will go to animal charities. My kids have told that since they started doing paper rounds.
Equity realease mortgages. 😩thanks for the information
What happens if you take one of these mortgages out and the price of the home becomes less than what is needed to be repaid?
That's why these are so heavily regulated...because that could potentially happen! The equity release companies mitigate this by giving a relatively low loan-to-value, but even so, it's a reality that your beneficiaries could face, in which case they would need to find the excess from elsewhere.
Don’t be a mug. They will end up owning your house for a fraction of its value when the interest is compounded. If you have no-one to leave your estate to it might be worth considering if you’re desperate but the sale of your house could fund good quality private care rather than a council care home. Stay away from these bloodsuckers. These schemes are not designed for your benefit. This lady showed very clearly that with the interest being compounded it’s not long before the debt is unable to be repaid so goodbye house.
You don’t know much about equity release at all. The property will always remain yours to keep for your whole lifetime without having to pay back a single penny during that time either. Who cares if the company profit from your property once you’re dead. You cannot take your property to the grave with you. It’s only a problem if you have beneficiaries you wanted to leave the property to.
@@Stringbean421 You are saying the same as I did however, it may be your house but you can’t sell it. Early redemption penalties make that a non-starter. The maximum advance is around 60% which is not a bad deal when the company comes to sell it, plus the usual average increases in property prices. These schemes were devised because they are so profitable. The adverts make it look as though they are doing you a favour when the exact opposite is true. I would also hazard a guess that you are connected to this industry. Also there seems to have been an increase in the number of firms that offer advice for upwards of £1800, no money just advice. Are there really that many mugs out there?
@@johncrosley1
You can sell your house any time. Yes, there are early penalty fees but that is dependant on who your money lender is. Some of them let you be free of penalty charges after five years. You can also transfer the equity loan you have from your property to the new property if you so wish. The loan companies are happy to do this as well. As for the advisors you mention, they are all free, they get paid by the lender. People need to make sure they choose an advisor from the Equity Release Council. Look them up online. Even the survey is paid for by the lenders, all you pay for is your solicitors fee.
@@johncrosley1
The lending company do not sell your house, they have no right. The property deeds are always in the hands of the owner. Remember, this is just a loan you are taking out, a loan called 'Lifetime Mortgage, but it's still just a loan. Your estate sells the property upon the death of the property owner and the lending company gets first bite of the cherry out of the proceeds of the sale because they have what is known as a 1st Charge on the property. Anything remaining, the estate keeps.
@@Stringbean421 Since you appear to know so much explain this to me. The adverts say the property is yours until you die or move into long term care. A couple I knew took equity release. He has since died so she carried on living in the house. She has now moved into a care home, is still alive so there is no estate or executors to dispose of the estate. Under the terms as I understand it the lender will now sell the house and any surplus passed on to the widow. Correct me if I’m wrong.
Hi there. Is there typically a minimum amount that you can borrow against the property?
Very useful. thank you very much. xxx
No, very interesting 👍
Nowadays most people could live comfortably off of the interest on the proceeds of selling their property.
Hi, is the interest always charged on the initial loan value or is the interest charged on the value of the property? For example, house value 200,000, loan value 50,000, interest rate 2.9%. Would the interest be charged on the 200,000 house value or the 50,000 loan?
Hi Phil, interest charged is always based on the loan amount you borrow (as with any other mortgage), so in this case £50K.
@@OliviaFenion thanks for your response, my family member has been charged interest fixed at 2.9% on the home value, instead of the loan value. The lifetime mortgage was started in 1999 with Aviva (formerly Norwich Union). Do you think they'd have a good case with FCA/financial ombudsman?
@@saulwest8254 That's really strange, because the house value will be constantly changing. I would definitely have a look at the original mortgage offer to double check exactly what the terms were at the time - I was reading just this week about a family who took out something similar years ago and realised only now that they had signed 75% of their property over to the lender without realising! In the first instance, have a look at the original offer and if they are still around, speak to the original mortgage broker. Your family member should have been given a Suitability Letter outlining exactly what was recommended and why. Failing that, it would be worth a chat with the lenders themselves (you can request a copy of the offer from them if you don't have it) and then with the FCA/ombudsman.
Have done this and greatly regret it as still owe £60,000 plus with interest rising each year 🥴 did not realise
If you didn't realise, I recommend you go back to the person who sold you the mortgage and have a conversation...by law they have to explain fully exactly what this mortgage is and the implications for you later on. If they didn't do that, you have every right to go to the ombudsman/FCA to make a complaint. x
“Wealth journey”?
Hi Olivia, I'm in the process of doing CeRER and this has explained things very clearly. Great job. I'm looking for a mentor, are you interested? Any help you can give will be welcomed.
Hi Teddy, Thanks for this comment and I am so glad you found the video helpful! At the moment I am unable to help you - mainly due to being 8 months pregnant with my first child, so the rest of this year is very much up in the air! - but if you think of anything that would make a useful video that you want to know more about, just let me know and I can certainly do that. Good luck with passing your CeRER, I hope it all goes well! :) Best wishes, Olivia
@@OliviaFenion Hi Olivia, thank you for taking the time to respond. Firstly congratulations i hope all goes well with the birth of your first child. I'll have a think and let you know. To be honest I saw your video about paying off your mortgage early and I recently started doing that however i intend to set up a spreadsheet to record my progress. I aim to pay off my mortgage 6 years early. Take care keep up the great work
What it lacks in continuity it makes up for in content xD
Can you help me please. Dabs from Derby.