The Real Truth about Equity Release
Ever wonder why the re-tweet and response rarely match? Then suddenly realise you've stumbled on the truth, more by accident than design. The Banks and Building Societies have morphed in to Casinos; they're playing fast and loose using everything within their grasp, leading double lives
They've been stopped from using your deposits to create money out of thin air. Messrs Carney/Osbourne saw to that. Stopped 'em dead in their tracks on that one. The funds they lend now have to be raised from commercial sources.
Though never at odds for long; with the idea of exploiting hidden assets. They had to come up; with something new, to fill this void in their existence. There had to be a way to get the 'Unwashed Masses' on the team sheet.
They'd tried 'Funny Money'; click of a mouse stuff, but soon realised it didn't make the kind of returns, they were accustomed too. At least; not on any kind of scale, they'd previously enjoyed. The 'Day of Reckoning'; came around all too soon, with UK Treasury the main beneficiary.
Though with piles of loot; by way of assumed assets, lying dormant on their books, often for decades. It suddenly occurred there had to be a way to access these undeclared assets.
Several possibilities had cropped up over the last decade; as they brain stormed the problem, which hadn't really amounted, to anything much. Until 'Bright Spark' decided; to take a peek at undeclared Property Values.
To discover; a veritable 'Treasure Trove of enhanced value, had lain there undisturbed for several generations. Bingo: the 'Holy Grail' was rediscovered, well almost? The trick would be; how to unlock it, without creating obligations. Obligations all but impossible; for the retired to meet, on any kind of regular monthly basis.
So a few 'Brain-Stormin' sessions later and 'Easy~Peasy'. They could take a stake in these individual property portfolios/ not by re-mortgaging or raising funds from commercial lenders. But by building a balance sheet based on accumulating assets. Right there under their big fat noses.
This was the assumed value; accrued by individual property holdings, for want of a better description. In this way a whole new 'Ballgame' was at their fingertips. "But it could all end in tears," 'Bright Spark' observed. Though he was readily air-brushed aside, for it was all hands to the tiller.
A few ads on Primetime TV fronted by some well known 'Celebs'; should assuage any silly notions or romantic concerns, from beneficiaries about the final account. The legators would all be dead and buried; they contended. Long before any niggling queries arose of that nature. If they needed to fend off the attention; of the No Win No Fee Briefs.
Be good to assess the extent; as to the possible take-up we can expect, added the Chief Exec. He knew one of the most disturbing aspects of this entire imbroglio; would be the moment when beneficiaries realised, the Bankers & Building Societies had first call in respect of existing liabilities
In addition: annual inspections would be necessary in respect of gas, electrical installation and insurance obligations. When they were taken into account; as the final reckoning at last saw the harsh 'Light of Day'
"But of course; it defies all logic, in respect of the age old max. An Englishman's Home is his Castle," observed 'Bright Spark'. "There are also aspects of this real deal; which may or may not be readily apparent, in the present climate where super-hot pricing prevails."
"In addition;" 'Bright Spark', continued, "aspects of this particular kind of deal; may not at first sight manifest themselves, in any significant way. Unless or until fundamentals of the Housing Market begin to change." i.e. "A severe price reversal occurs. To bring about the situation we know as 'Negative Equity'."
"There have been instances of this; in the not so distant past, as the walls came tumbling down," he added. "So in the present analysis; when we are dealing with a broken monetary situation, where the bank notes in issue are nothing more than IoUs it is a case of:-"
"Caveat Emptor: as reality dawns and you realise you've been Tangoed - Bigtime."
Watch this space, I'll be back,
Daz.
No comments:
Post a Comment