Equity Release - Anybody done it?

[cliffekid 10]

Has anyone had any experience of releasing capital tied up in property? is it worthwhile or just a con?

[Helly 10]

Depends which type you do.

 

The point is, the company will end up owning some or all of your house although you can continue to live there until death. So it depends on whether you want to leave something when you go.

 

I am assuming here you mean an equity release scheme rather than any type of remortgage though

[SHsheff 10]

Has anyone had any experience of releasing capital tied up in property? is it worthwhile or just a con?

 

It depends on your point of view. Using a reputable company, it won't be a 'con', you'll know exactly what you're signing up to.

 

If you're getting on in years, and your kids aren't relying on the full equity from your house then it's fine. You release some equity as a capital sum, and you can enjoy the use of that money without having to sell your current home and trade down to a cheaper one.

 

What it does mean is that you're effectively paying interest on that money, as it will be knocked off the value of your property when it's eventually sold.

 

It's your choice, so to answer your question, it's worthwhile if it suits you!