interestrateripoff Posted June 10, 2014 Share Posted June 10, 2014 No link just heard it on bbc government to launch a equity release scheme for over 75 to fund extra pension from value of home. Will give homeowner a lifetime income. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 10, 2014 Share Posted June 10, 2014 Who would have guessed....still will save lots in welfare costs in the future, old enough to start spending the house, pension top-ups. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted June 10, 2014 Share Posted June 10, 2014 All over BBC news this morning. No BBC link as of yet. http://citywire.co.uk/new-model-adviser/think-tank-proposes-govt-alternative-to-equity-release/a755513 http://www.moneymarketing.co.uk/news-and-analysis/pensions/could-government-offer-equity-release/2011062.article Last throw of the dice? Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 10, 2014 Author Share Posted June 10, 2014 http://www.bbc.co.uk/news/magazine-27189951 Koreans could once be sure that their children would look after them in their old age, but no longer - many of those who worked hard to transform the country's economy find the next generation has other spending priorities. As a result, some elderly women are turning to prostitution. Kim Eun-ja sits on the steps at Seoul's Jongno-3 subway station, scanning the scene in front of her. The 71-year-old's bright lipstick and shiny red coat stand out against her papery skin. Beside her is a large bag, from which comes the clink of glass bottles as she shifts on the cold concrete. Mrs Kim is one of South Korea's "Bacchus Ladies" - older women who make a living by selling tiny bottles of the popular Bacchus energy drink to male customers. But often that's not all they're selling. At an age when Korean grandmothers are supposed to be venerated as matriarchs, some are selling sex. As GDP now includes prostitution perhaps we could pimp out Britain's grannies as well. What a guaranteed income find a nice relaxing job.... Quote Link to comment Share on other sites More sharing options...
winkie Posted June 10, 2014 Share Posted June 10, 2014 ....they give it in one hand, then they take it away with another, whats new......could be an incentive to downsize and put the free equity accumalated over the years into a nsi penioners investment helping with old age costs or give it to grandchildren to help to buy them a home they can now no longer afford to buy or it could just go on caring fees....who knows. Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted June 10, 2014 Share Posted June 10, 2014 No link just heard it on bbc government to launch a equity release scheme for over 75 to fund extra pension from value of home. Will give homeowner a lifetime income. Fundamentally a good idea in my opinion but I would like to know the details. For me, it would further reduce the need to ever get an annuity. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 10, 2014 Author Share Posted June 10, 2014 Fundamentally a good idea in my opinion but I would like to know the details. For me, it would further reduce the need to ever get an annuity. I'm guessing this is going to be aimed at the BTL, the government knows it's missing out of the revenue stream this way your BTL is your pension..... Sell a chunk to the govt for a guaranteed income plus the rent..... Govt then on the hook for repair costs? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted June 10, 2014 Share Posted June 10, 2014 they take Quote Link to comment Share on other sites More sharing options...
winkie Posted June 10, 2014 Share Posted June 10, 2014 Could be an incentive to stay in your over large house reducing supply for younger people and keeping prices high Hurrah! The "free market" triumphs once more (kidding). Depends on the cost.......sure the wider family will be ready to offer their valued options.....or they could move in. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted June 10, 2014 Author Share Posted June 10, 2014 Government To Possibly Get In On Equity Release Bandwagon Can someone merge please. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted June 10, 2014 Share Posted June 10, 2014 Government To Possibly Get In On Equity Release Bandwagon Can someone merge please. Thanks, I did check first but your topic on the subject wasn't there at the time. Quote Link to comment Share on other sites More sharing options...
Digsby Posted June 10, 2014 Share Posted June 10, 2014 Another attempt to prop up house prices by underwriting current values with taxpayer's money, socialising any losses from a fall in prices ( just like HTB)? "We're all in it together", or if we aren't, they'll make damn sure we are. Not to mention the disincentive to downsize already noted. Quote Link to comment Share on other sites More sharing options...
winkie Posted June 10, 2014 Share Posted June 10, 2014 they take ...they take it back in what it could save on paying out extra smi, or pension support or even winter fuel, care and other pensioners costs......equity release is what it says...means tested on net worth/income?....only a thought. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted June 10, 2014 Share Posted June 10, 2014 Off topic but I'd make them pay something towards their prescription charges. Where I live they walk out the surgery, straight into the pharmacy (its in the same building - go figure) with wreaths of prescriptions. The pharmacy staff number half a dozen and are constantly on the go. No one seems to be getting any better. Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted June 10, 2014 Share Posted June 10, 2014 I think the thread title should be changed to 'Think-tank Recommends That Government Launches Equity Release Scheme.' A Westminster-based think-tank, the International Longevity Centre UK, has produced a report recommending that Government implement an equity release scheme for older homeowners, and the report will be presented in a House of Lords Committee room on Thursday. This may well be part of the 'Yes Minister' type circus where Government responds to recommendations from a charity-based pressure group, but even so, I would imagine we're a long way from anything concrete. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 10, 2014 Share Posted June 10, 2014 ....they give it in one hand, then they take it away with another, whats new......could be an incentive to downsize and put the free equity accumalated over the years into a nsi penioners investment helping with old age costs or give it to grandchildren to help to buy them a home they can now no longer afford to buy or it could just go on caring fees....who knows. One should question why they take so much in the first place. Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted June 10, 2014 Share Posted June 10, 2014 Cass Business School's major sponsors AXA Private Equity Bariba Corporation Bloomberg BNY Mellon Bureau Van Dijk City of London Credit Lyonnais Credit Suisse Dealogic Ernst & Young Mergermarket Santander Thomson Reuters Though total donations are only 5% of income. 9% of income (£5.5m) is from Gov’t HEFCE research and tuition grants http://www.cass.city.ac.uk/__data/assets/pdf_file/0018/180360/Cass_Annual-Donor-Report_2013.pdf Quote Link to comment Share on other sites More sharing options...
byron78 Posted June 10, 2014 Share Posted June 10, 2014 Oh FSS. If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one. Quote Link to comment Share on other sites More sharing options...
Reck B Posted June 10, 2014 Share Posted June 10, 2014 I wonder how much 'equity' there is in the UK housing market? Would be interesting to see it broken down into; Equity as a product of debt repayment. Equity as a product of debt expansion. The difference being 'phantom equity' which, as we all know is being protected at all cost. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted June 10, 2014 Share Posted June 10, 2014 Oh FSS. If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one. or their small flat...which is where many of the elderly live. Quote Link to comment Share on other sites More sharing options...
Billy soy Posted June 10, 2014 Share Posted June 10, 2014 Oh FSS. If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one. +1 Quote Link to comment Share on other sites More sharing options...
onlyme2 Posted June 10, 2014 Share Posted June 10, 2014 It could be a modern variation on indentured peasantry. Each generation has to "buy" the same land+house over again from the Crown. Government and the Lenders turn out to be two cheeks of the same arsehole. The liaison between the bankrupt of england the govt. being a prime example. Quote Link to comment Share on other sites More sharing options...
durhamborn Posted June 10, 2014 Share Posted June 10, 2014 (edited) Step 1. Make access to pension capital from 55 available. Step 2. Open a scheme where the government take your "equity" in return for an income. Step 3. A few years down the line pension capital and house equity will be counted for means testing. Step 4. Ensure no capital is passed down the generations.The government needs to stop people who have worked all their lives paying their mortgage off and retiring in their 50s when they get an inheritance.20% of the UK population will never work and need benefits.Its crucial to the government the people who do work hard cant ever stop. The rich of course arent counted here.This is all about getting hold of the capital from people who might have £100-£200k in net assets. Destroy wages,destroy pensions,then take capital. Edited June 10, 2014 by durhamborn Quote Link to comment Share on other sites More sharing options...
gf3 Posted June 10, 2014 Share Posted June 10, 2014 Oh FSS. If people in big houses want to release some money for retirement let them sell the big house and move into a smaller one. This may work in the SE but not in the rest of the county. My 3 bed is worth £180,000 I would quite happily move to a 1 bed house so long as I could have a shed for bikes and a dive to park the car. Have a look around at houses you would be happy to down size to when you retire. Quote Link to comment Share on other sites More sharing options...
gf3 Posted June 10, 2014 Share Posted June 10, 2014 As such it sounds like a good idea. I don't want to be poor all my life and die with a massive amount tied up in a house. The thing that I am worried about is the interest on the equity release. Are they going to let the banks have virtually free money and then charge 7% to the customer? This is what they have done with the green deal. Gets me how some of these government schemes work. Had some one ring me up about the boiler scrappage scheme. When I said I was interested because my boiler had broken down I was told I was not legible for the scheme. Seems they only want to replace perfectly working boilers. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.