Do any members have knowledge of this and how it may effect the very little benefit I presently get.

I have no one I wish to leave my house to and would like to improve my quality of life by at least being able to run my car and get out when the mood takes me,start attending dog shows again and breed the occassional litter without the worry of emergency vet fees[ won't even mate a bitch without money there to fall back on] I have no wish for holidays, my last paid for hol was 1976 to the TT races[ boyfriend at the time was intersted]in the IOM since then I have stayed with family and friends till dog numbers got too high.

I have been waiting for answers from various companies but they are very slow getting back to me, advice lines don't have folk there to answer queries so a call back is arranged for 5-7days hence when I want to know now.

Any comments welcome

As far as I understand it this is not the way to go, they will offer you a very poor return on your property so the amount you will actually get is not what you may expect. Down sizing or even renting may suit you better or could you let out part of your home.

I imagine that if you do anything to increase your income it will or could affect your benefits but may not you will have to check with whoever is paying your benefit.

I know quite a few customers that have done it, and have done things they wanted like doing the garden or doing the house up.
If you havnt anyone to leave the house to I dont see a problem, and I actually say to customers about it, but alot say their kids wouldnt let them (Oh I wonder why!!!!!!)
The problem though is benefits, I know when I was on benefits you had to tell them if you had savings over I think £6000 really, if you took alot out it would not pay longterm as you would loose your benefits.
Hope you come to a solution.
Lea :)

> As far as I understand it this is not the way to go, they will offer you a very poor return on your property so the amount you will actually get is not what >you may expect. Down sizing or even renting may suit you better or could you let out part of your home

Nova's right :)

Thanks Nova, I don't wish to start paying rent, my house is at the lower end of the price range so down sizing isn't an option, I louked into that when  I was still working.

I am a very private person and couldn't face having a stranger in the house [I am uncomfortable when puppy buyers I don't know come around], about 15yrs ago thought about letting one of the bedrooms to a nursing student but as I worked nights I was worried about parties and upsetting the neighbours.

Will contnue my research

In 2007 a woman in her late 60's was in desperate need of money to pay a huge bill.   I'm talking £60k.   She went to Halifax or RBS which was her main bank and explained her situation.   They put a charge on her property after a building society surveyor valued it and got 3 independent estate agents to value it for resale.  This means when she dies they take her property.  I'm not saying this is the way to go.  It probably depends on the value of the house.  She has to pay monthly interest as it is like an interest only mortgage.  I hope you follow what I say as I'm not much good at explaining things.  Also this was before the double-ditch recession so I'm not sure whether they do it now. 

If you can resolve the benefits issue I would say don't let the thought of a 'poor return' put you off.  If it gives you the chance to improve the quality of your life it's surely worth considering....if you've no-one to leave your house to, it won't matter if it was undervalued 

> it won't matter if it was undervalued 

Of course it does :) Particularly if there are other alternatives :) Don't forget that the actual amount that you get (and any 'rent' that you may have to pay) will depend on your age and the value of the house - if you are quite young, you won't get very much as they will possibly have to wait a long time before they actually can take possession of your house :)

See here for some good advice Savvy Woman

Hello,

I would recommend having a look at the Money Saving Expert website (was set up by Martin Lewis). There will be a lot of advice about equity release on there, both articles and on the forum, which is part of the site.

I had a distant relative who took ER. In terms of "value", he got a low sum, but it kept him comfortable and happy and in his own home. A lot may depend on age and how long the company feels that it will have to wait before recouping their investment.

Thanks for all your replies and I will be checking out all the suggested links.

Had a call back from a chap earlier and he is going to do a more indepth assessment over the phone next week, he says it depends how much I take at a time and what I use it for as to whether my benefit is affected.

Rhona - do have another think about having a lodger. I hated the idea but due to the sad state of my finances I had to do it a few years ago. I was very careful who I chose and in the end it worked out really well. The lodger even used to do the odd bit of dog sitting for me :) But I suppose that might affect your benefits too ...

Rhodach, I recently attended an NHS retirement seminar and this was one of the issues discussed which I was particularly interested in. 
I think what I learned from the talk was
a) there have been many changes to the regulations in the last couple of years, partly due to some rather bad misselling in the past, so peoples previous experiences of this may not be all that applicable.
b) it can be very complicated due to the impingement it may have on tax, future benefits and entitlements to care.
c) the strong recommendation was it is something you might consider but because of all the above and the fact you are talking about potentially very large sums of money you should not make any decisions without GOOD, INDEPENDENT advise.  That sort of advise, of course, costs money but should save you in the long run.

Will affect means tested Benefits, so Council Tax benefit, and Income support (or whatever version of thsi people are on JSA etc).

It would not affect contributions based benefits, or ones like Disability Living Allowance.

What if you released some of the equity to pay off yr ex (his share) instead of selling ? (this isn't aimed at the original post, seperate question)
I understand the interest would keep going up unless you pay off what you borrowed (equity) and if you don't then when you die the house belongs to them. But this way HE gets what HE wants and you (I) keep a roof over our heads?

Have you looked at the martin lewis website there are often good tips on there. Also CAB if you are able to get in touch with them

http://www.moneysavingexpert.com/news/protect/2010/06/should-you-equity-release

Thanks :)

Rhodach,

My advice would be, hold onto your home until you are at least 60 if you can, don't lose out on these quick remedy options, then put your name down for a private retirement flat, (lots of nice complexes and flats out there, start looking around ) you will then have a home (no need for benefits) and all the money from your house sale to live it up as much as you like, when it runs out you can go back to pension and top up claims. I know you are wanting to have money right now and who doesn't, but when you've worked and saved and have your own property you want to have some benefit, just hold on for a few more years. :-)

I know you probably wish to stay in your own home once at retirement age but two couples I know who have done this, they have a great retirement life, 3-4 hols a year and plenty of money to go out with and because they held on until they could get that retirement flat.   IMO it's worth holding out for. :-)

Retirement age for me is 66 due to government keeping moving the goal posts, I can't live like this for another 9yrs, the chap who is ringing me back next week is doing a full assessment on my finances and what other options there may be for me and any allowances I may be able to get, he isn't one of the sellers of equity release.

I won't jump in without a great deal of thought[ you should see my process of buying a new car, I know more about it than the salesman by the time I reach the showroom], I don't want holidays, never had a passport or the desire for one, I just want more than £91 per week to live on, my take home pay was £1800 on a good month when I had done lots of weekends and unsociable hours so you can see why I am so unhappy now and can't see a light at the end of the tunnel.

As I said there is no one who deserves to be left my estate so why shouldn't I take the benefit during my life time and they get the shock when I am gone that there is nothing left.

Fair enough :-) at least you will be looking at the small print and not jumping in, remember to look far ahead not just for the next 5-10 years, you could be around until you are in your 80's and 90's (I'm planning on it :-D ) so make sure you look after yourself for the future too. :-)

Rhodach, I couldn't live on that amount, gosh....... I don't know how people do it. :-(

Just a thought and I know absolutely nothing about this just a thought plucked from thin air, (which might be totally ridiculous) but with your nursing background I was just wondering whether you would fit as a foster parent? I know you don't want a lodger, but the money is good (so I saw from an advert lol) is that worth looking at?

I am riddled with arthritis, was told in 2006 I would be wheelchair bound in 2 yrs but I have kept going, I have made adaptations to the house over the years that allow me to live here and I kept working till 2011 on a very busy ward of acutely ill and dying patients with lung disease covered by extremely strong pain meds.

Even with the above I am not deemed elligible for DLA to allow me the luxury of running my car, I don't want much.

I don't get this system of ours, never have! IMO when someone has worked hard for most of their life and paid into a system to help others and keep this country on it's feet, they should get points for that and when no longer able to work automatically get help. I know they are getting tougher today on DLA but so unfair, no you are not asking for much at all, this country doesn't look after those who try hard, sickens me, always does.

Fully understand why you need to do something, it's a great shame you have to go down this route though.

Rhodach, are you not drawing your NHS pension yet?  I had it in my head somewhere that, if you were retired due to ill health, you qualify sooner or without penalty or something.

Thanks, I keep saying I don't want the world, there are folk who are working full time swanning about in gas guzzlers and the reason they needed DLA no longer exists but every 3 yrs they get a new car and only pay for petrol.

I am going to place another claim and get the health professionals to give me letters in support, I hate to take up appointments at clinics[ plus the expense of getting to them in a taxi] when I know they can't do anything more for me just to get documented evidence to get benefits that folk can clearly see I need except those agreeing to issue the benefits.

I will stop whinging now.

I didn't pay in because as a single parent I couldn't afford to then the mortgage rate went through the roof so keeping my home was important. If the endowment had paid out what it promised at the start I would be laughing but I could have put the monthly payments into my mattress and come away with more money than I got.