Equity Release Schemes

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Samurai

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A friend of mine asked me about equity release schemes and how they can help turn some of the vaule of your home into cash. I have read some good info on citizensinformation.ie .....anyone have a view......
 
Samurai said:
how they can help turn some of the vaule of your home into cash.
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I would see this as turning some of the value of your home into debt. Not necessarily a bad thing but you need to be careful and make sure that this course of action is appropriate and the best option for your specific needs.
 
What's the difference between 'equity release' and remortgaging your house?
 
ClubMan said:
Nothing.
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Not entirely accurate, but the original poster would need to clarify whether they are referring to equity release schemes for the over 65's or equity release for those still in employment.

The former involve no repayments and usually no repayment of the debt until the death or relocation of the home-owner, the latter do involve repayments until the end of the loan term at which point the debt is fully repaid.
 
Dave Vanian said:
The former involve no repayments
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But isn't the quid pro quo for no repayments either getting a lot less than the market value for a particular share in the property or an increasing share of the property being taken by the equity release lender as time goes by?
 
ClubMan said:
But isn't the quid pro quo for no repayments either getting a lot less than the market value for a particular share in the property or an increasing share of the property being taken by the equity release lender as time goes by?
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Yes, depending on whether the particular equity release scheme is buying a portion of the house or lending you the money against it.

(Clarification - this question and answer refers only to to equity release schemes for the over-65s.)
 
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