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I think there is a degree of nonsense being written now.

 

Companies that let you release equity from your home are not robbers or fraudsters.

 

There may be an issue about how well informed people are when they sign up to do it but as in any major financial transaction it pays to enter into it after doing due dilligence.

 

Too many people dont do this. This is not a dig at the OP's dad, he is far from being alone. But this thread serves as a warning for people to be fully and totally aware of what you are signing up to and what all the implications are. Especially if when you die somebody other than your spouse or partner will still be living in the house.

 

That said all this reminds me of the endowment mortgage fiasco when enough complaints about how much people were made aware of the risks of the maturity value not being able to cover the mortgage finally led to intervention and compensation in some cases.

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6 minutes ago, Goliath said:

Fraudulent bastards it is then, have it your way.

 

 

 

Changed my mind.

 

Evil, callous, manipulative, fraudulent bastards is closer to the mark.

 

 

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5 minutes ago, Slow and Steady said:

"Regulated" makes it sound like it's ok up to a point!

 

Does it?

 

Well the same term applies to how they regulate other parts of the financial sector, banks, building societies ect.

5 minutes ago, MtB said:

 

 

Changed my mind.

 

Evil, callous, manipulative, fraudulent bastards is closer to the mark.

 

 

 

Utter nonsense.

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3 minutes ago, The Happy Nomad said:

I think there is a degree of nonsense being written now.

 

Companies that let you release equity from your home are not robbers or fraudsters.

 

There may be an issue about how well informed people are when they sign up to do it but as in any major financial transaction it pays to enter into it after doing due dilligence.

 

Too many people dont do this. This is not a dig at the OP's dad, he is far from being alone. But this thread serves as a warning for people to be fully and totally aware of what you are signing up to and what all the implications are. Especially if when you die somebody other than your spouse or partner will still be living in the house.

 

That said all this reminds me of the endowment mortgage fiasco when enough complaints about how much people were made aware of the risks of the maturity value not being able to cover the mortgage finally led to intervention and compensation in some cases.


I think we all understand “robbing bastards” even if it ain’t legally accurate. 
The worst thing about these clever robbing bastards is we often have no choice.

 

Tax on beer and fags, the robbing bastards!

Utility companies, the robbing bastards!
 

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Just now, Goliath said:


I think we all understand “robbing bastards” even if it ain’t legally accurate. 
The worst thing about these clever robbing bastards is we often have no choice.

 

Tax on beer and fags, the robbing bastards!

Utility companies, the robbing bastards!
 

 

One has a choice about entering into an equity release agreement.

 

Nobody is forced to. 

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Equity release salespeople aren't the only people who try to hoodwink the elderly. Salespeople of equipment for the elderly and disabled are the same. Try buying a rise and fall chair. Most sellers haven't showrooms you can visit. They bring a chair and try to talk you into buying one. The price can alter during the visit. 

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2 hours ago, Slow and Steady said:

"Regulated" makes it sound like it's ok up to a point!

 

It was worse before it was regulated. There used to be stories of the final balance of the equity release exceeding the value of the estate, and the equity release firm pursuing the heirs for the remainder of what they are owed. Since regulation this can't happen. 

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2 minutes ago, booke23 said:

 

It was worse before it was regulated. There used to be stories of the final balance of the equity release exceeding the value of the estate, and the equity release firm pursuing the heirs for the remainder of what they are owed. Since regulation this can't happen. 

Which is one of the reasons why the interest rates are high - to cover the lenders losses where there is insufficient equity.

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4 minutes ago, booke23 said:

 

It was worse before it was regulated. There used to be stories of the final balance of the equity release exceeding the value of the estate, and the equity release firm pursuing the heirs for the remainder of what they are owed. Since regulation this can't happen. 

 

Hence the negative equity guarantee which seems to be the norm now.

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  • 2 weeks later...
On 03/04/2022 at 22:43, booke23 said:

 

It was worse before it was regulated. There used to be stories of the final balance of the equity release exceeding the value of the estate, and the equity release firm pursuing the heirs for the remainder of what they are owed. Since regulation this can't happen. 

 

May I have a quibble?

 

I don't think heirs ever inherit a debt. A basic principle in law is an individual's debts die with them, when they die. 

 

The closest likely to happen is the scoundrel equity release company can look to the deceased's estate to pay any sums outstanding on the loan. If there is not enough money in the estate after sale of the house and liquidation of any other assets, that's their tough luck.

 

I don't think any actual liability rests on beneficiaries named in the will assuming there is one. The debts get paid first and the remainder is paid out in accordance with the terms of the will. Similarly if there isn't a will, whatever value lay in the estate of the deceased is the limit of what the loan company can collect. 

 

IANAL.

 

 

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6 hours ago, buccaneer66 said:

Well I've had an offer on Dad's house so depending on whether the housing association accepts me for a shared ownership flat I may be getting a boat.


Excellent news! 

 

10 minutes ago, MtB said:

 

May I have a quibble?

 

 

I'm sorry @MtB, but all quibbles must be submitted in writing within 7 calendar days of the post in question so I'm afraid I have to dismiss it. 😂

Seriously though, I'm sure you're right.

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7 minutes ago, booke23 said:

 

 

I'm sorry @MtB, but all quibbles must be submitted in writing within 7 calendar days of the post in question so I'm afraid I have to dismiss it. 😂

Seriously though, I'm sure you're right.

 

Bugger, I wrote that a week ago but forgot to press "Send". Does that count after all?

 

Bottom line is heirs may find their inheritance all gobbled up and they get nothing, but on the upside the law does not expect them to make good any shortfall arising from contracts entered into by the deceased.

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20 minutes ago, MtB said:

 

Bugger, I wrote that a week ago but forgot to press "Send". Does that count after all?

 

Bottom line is heirs may find their inheritance all gobbled up and they get nothing, but on the upside the law does not expect them to make good any shortfall arising from contracts entered into by the deceased.

 

How does the forum software allow you to write something, forget to press send and then it suddenly appears a week later?

 

That is mystifying.

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8 hours ago, The Happy Nomad said:

 

How does the forum software allow you to write something, forget to press send and then it suddenly appears a week later?

 

That is mystifying.

 

I've found that if you write something and don't post it, the next time you are on that thread and click on 'reply' your written but not sent  words appear as if by magic - I must admit I've had it happen a few times when I read a thread and think "I've replied to that" but there is no reply showing. Click to make a reply and it 'pops up' smiling at you saying "I'm still here".

 

Try it.

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3 hours ago, Alan de Enfield said:

 

I've found that if you write something and don't post it, the next time you are on that thread and click on 'reply' your written but not sent  words appear as if by magic - I must admit I've had it happen a few times when I read a thread and think "I've replied to that" but there is no reply showing. Click to make a reply and it 'pops up' smiling at you saying "I'm still here".

 

Try it.

 

Ah he meant the 'save composed post for later' thingy. Yes I'm familiar with it, but it normally has a banner making it obvious it's been saved from earlier. Doesn't always work for me, especially on my tablet for some reason. If I switch to another tab whilst composing something the text I was composing has completely vanished when I switch back.

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Too right ...the cursing starts when the children discover mums million quid property is entirely in the hands of a financier,......and they get 'nothing".......Bleak House all over again?

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29 minutes ago, Tracy D'arth said:

Its the childrens' expectation that they will inherit a lump that is the crux of the problem.

Why do we think that the last generation owes us anything?

True. Our kids have told us in no uncertain terms, to take all equity possible out of the house and spend it. We did the same with my parents. Problem there though, is amongst other reasons not to do it is, who will pay our care home fees if/when needed? the taxpayer? 

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8 minutes ago, mrsmelly said:

True. Our kids have told us in no uncertain terms, to take all equity possible out of the house and spend it. We did the same with my parents. Problem there though, is amongst other reasons not to do it is, who will pay our care home fees if/when needed? the taxpayer? 

I have the same dilemma, I am terminal, untreatable. I intend to just die when the time comes, no way am I going in a god's waiting room home. If you die penniless then the local authority will dispose of your carcass. Or you could try leaving your body to medical science to be carved up by students but they are getting a bit fussy about who they accept. The university would then cover the funeral expenses.

 

Why should the taxpayer not cover your end of life expenses? Have you not paid many times over?

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42 minutes ago, Tracy D'arth said:

I have the same dilemma, I am terminal, untreatable. I intend to just die when the time comes, no way am I going in a god's waiting room home. If you die penniless then the local authority will dispose of your carcass. Or you could try leaving your body to medical science to be carved up by students but they are getting a bit fussy about who they accept. The university would then cover the funeral expenses.

 

Why should the taxpayer not cover your end of life expenses? Have you not paid many times over?

I am genuinely sorry to hear you are that ill, my friend an undertaker once said to me nobody's left on top! He is of course correct. I to don't fancy ever going into a home or hospice but that might happen or not, sometimes it's out of our hands 😩

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