Equity Release – Pot of Gold?

This is a follow-up to my post “Equity Release Revisited” which prompted me to look into the subject again and start a new series of blogs on the subject.  I first wrote about this in 2012 and then again in 2015.  (You can find my earlier posts by clicking on Equity Release in the TAG CLOUD).

The latest reports in the press about the joys of  Equity Release suggest that pensioners are drawing down £11 Million a day, against their housing asset.    That’s a staggering £4 billion a year !!!!!!!

That’s a lot of Lamborghini’s.    George Osbourne’s one time idea of what old people could spend their pension funds on.  🙂

In fact it would only buy about 13,000 Lamborghini’s, so a lot of pensioners would miss out unless they had a luxury car-sharing scheme.   Still, it would be very interesting to see what 13,000 pensioners racing about in Lamborghini’s would look like.  I expect it would raise a few eyebrows and attract more than a few speeding fines 🙂

Now coming back to Equity Release, the typical loan to value ratio of Equity Release is 30%.  So these new petrol heads have effectively handed control of £12 billion of their wealth to a pack of avaricious insurance companies.  I wonder if they’ll regret that decision if they subsequently require care and find that the loan companies won’t lend them any more money.

No doubt they will also offer to insure the Lamborghini’s too.  Although I am certain that won’t be cheap either, they will probably want half of your newly acquired loan.

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3 Responses to Equity Release – Pot of Gold?

  1. we all go to ”Hell in a hand cart” be it powered like a lamborghinne, is my first reaction?? More sense later! I trust and hope.

  2. Newopinion.

    Very interesting? My first comments still stand: however in a more reflective mood of old timers, senile dementia and alzhemiers, I wonder if you the reader watch BBC 2 on Saturday night 1st. December at 21.00, and Stacy Bushell with her dance memoirs programme. It was intriguing how the different age groups with mental and physical problems, relaxed when in the environment of music, not head banging, but gentle relaxing music, as one was acquainted with during the passage of life, socially when one relaxed , met fellow humans for social company dancing/singing etc… . The emphasis was the social meeting of similar groups either defined by age or a social group, such as a family occasion/ work social club, or an outing. attitude of mind.
    Music relaxed ones attitude to social barriers and helped give a uniform of an easy mind without prejudice, similar to when we were all pre- pubisity children. I found it enlightening, and a relaxing.
    And as a young age money has no meaning, it is just love and being cared for! We again reach these wishes in our latter years, but socially we are considered to be adult and responsible, and if we are ‘fleeced’ it is our own fault??? WE need a more responsible attitude socially for the elderly, we may be required to have a attitude to thievery and deceit, from the less able. The negative to this is may be our own selfish attitude in our mid life as we defend our income and asset, from all those regulatory and other less desirable characters we may meet in life’s rich pattern.

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