All You Need to Know About Equity Release Schemes | This Morning

Martin Lewis explains what equity release is and how it might help your finances.

[paulg]

I’ve been sending emails and letters to every money show, watchdog, This Morning etc with no response to get this stopped as an option!!! No one is interested and it’s killing me honestly. My parents took one out a long time ago for a 25k loan, but didn’t tell anyone else and they clearly didn’t understand what it meant. You have to consult a solicitor but as theirs said to me their job is to explain it not warn them off. I find that quite unbelievable still. If they had lived say 10x more years (which maybe they thought that at the time) then not too impacting BUT if you live many years then the interest grows and grows to unbelievable amounts. Currently a 25k loan they took is now worth 10x that of the house value to the equity company. It’s Wonga for the elderly and someone needs to do something about it as it’s disgusting that a 25k loan could result in them taking the entire house when they die. Disgusting and way worse than PPI so why is no one doing anything about it?!?!?! My parents worked all their lives like the rest of us to pay off the mortgage and own the house. Now an equity company will own it .., how is the Uk government letting this happen?!?!

[licentiaplaythrough]

Dont ever release equity... You pay interest in the property. 50k turns in to a 150k debt over 15 Its basically a bad loan.. on top of that the bank sells the house at any So could sell a 250k house for as little as 60k just to get the money back. Leaving family members screwed.

[gerrylast]

I love the way the maggots try to sell this. Typical is release equity to buy a new kitchen. So who does that benefit exactly? Pretty sure I would not borrow money from someone in order to make my property more valuable for them when they sold it (family and friends excluded of course).

[marianneward]

Do not do it Mum got £20K and when she died they gave 12 months to sell house or they take the lot. Had to pay £150K interest at £1000 month at the end. It is a rip off. They should not be allowed. Selling this as a good ides to people in their 80's is sick. Aviva is one of the worse.

[richardperris]

I agree this is not a good deal if yoi want to pass your home on to your chikdren. But if one is childless, is there really much to lose?

[skinbeautyproducts]

That's why you need to open a Family Trust Fund, and transfer the Deed Property name, from your name, to the Beneficiaries names listed within the Trust!

You yourself who will be the "Trustee" for opening the "Trust Fund"
You can ALSO list yourself as one of the Trustees & Beneficiaries.

Your children, grand children, Husband/wife/partner, and whoever else you choose, can also be listed as a Beneficiary.

And then when you're no longer here, the Property will NOT endure the Taxes he spoke of, so you will not lose your inheritance!!
And that's what he didn't say.

Please research it

Plus if you're no longer married, all the assets in the Trust can NOT be touched!
Not even via a judge

[davidmcnamara]

My parents went in for this.
Me the son, didn't get a f*cking penny.
I was working in Germany at the time, so didn't get a say.
They were both suffering from senile dementia, and accepted £20, 000 for a £75, 000 house.
As soon as they handed over the house, it was sold at auction the next day, for a £30k profit!
A Pakistani drug dealer bought it, at persecuted my Mother and Father, until the day they died!
Good luck folks.