Share Your Plans Regarding Equity Release with the People You Lovesubmitted on 1 August 2019
If you intend to take out a loan via equity release, you need to inform the people you love about it. It's not a smooth transaction, and it requires everyone in your family to know what you intend to do. Equity release works by securing your property against the loan. It means that you can get the money right away, but the creditor has the right to sell your house when you die or go into hospice care. The total loan plus the interest will get paid through the sale of the property.
Once you die and your kids receive the information about the loan you took out before, it will surprise them. You don't want your children to worry about getting a low amount from the property, especially if they were expecting that they would inherit it.
It could even cause chaos within the family. Your kids might start blaming each other for not knowing about your plans, and why no one asked you while you were still alive. It could leave a huge mess, and you don’t want that to happen.
Consult with your kids first
Before you pursue your plan, you need to tell your kids about it. If you need money, perhaps your children can afford to give you it, and you won't have to get equity release. They can also suggest other loans that might work for you or even take the loan out on your behalf. If they can’t, you can consult with experts in over 55 equity release. Talk to them about your plans and they will tell you other details regarding such loans. These experts will also prepare you as you begin submitting your loan application.
You have the final say
Even if you consult with your kids, you should still decide what's best for you in the end. It's possible that your children won't understand your plans. For instance, you might think about using the loan so you can travel the world. It might be an unwise decision in the eyes of your kids, but it means a lot to you. For several years, you sacrificed your plans to travel because you wanted to give your kids what they deserve. It's not about asking them for permission but telling them that you're going to take the loan out to do whatever you want.
It’s okay to be selfish at this stage in your life. You already did a lot for the people you love, and it’s time that you do something for yourself. Besides, you own the property, and you’re not going to hurt anyone with this loan.
This loan also has a “no negative equity” policy which means that your kids won’t have to pay your remaining loan if the sale value of the house is lower than the total amount borrowed plus the interest. Since you’re not going to be a burden to your family when you die, it’s fine to pursue this plan.
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