Equity Release

[droopydrawers]

Does anyone have experience or knowledge about Equity Release on purpose built apartments for the over 55s please.

There is almost 100 years lease remaining and owners 80 years old.

Many Thanks.

DD

[atalanta]

My father went into this question, and came to the conclusion tnat there were so many fees and costs and extras, he was paying out far more than the small extra income was worth. However, my aunt, his sister, did go down that road, and died just after the time when some rebate could have been claimed. The family lost tens of thousands of pounds. We'd rather have lent her money to be claimed against her estate, if she had asked, but she went ahead and did it without asking the family for advice or help. Seems a poor deal, whichever way you look at it.

[tonywiltshire]

I agree with atalanta, I have looked at a number of these schemes and have yet to find one I would feel happy to recommend, I would suggest you only use this type of scheme if you are very low on options.

[Peter Pedant]

these are uniformly a terrible deal
do as TW says !

the deal is bad because of the miracle of compound interest
a debt at 7 % per annum will double in seven years

[droopydrawers]

Thanks for your replies. I have gone into a bit a few years ago but decided to down size in the end. I agree they all sound a pretty raw deal.

This query was more for a friend/neighbour who is adamant to go ahead and "make some money". I had given my opinion, but just in case I was wrong I offered to ask you lovely people,

We worked too hard to buy a property to loose it these people.

DD
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