Single Person, Own Home, With Pension, Will Not Leave Anything To Family - Is It Worth Taking Equity ?

[bond]

Hi, situation with an old single person on a pension who has no dependants and distant relatives, owns a home outright, therefore does not want to leave the property to any family member upon death, would it be really silly to sell the property to a company and gain an income from them whilst still alive (or like a draw down where they own the property when the owner dies)? I know it's all a rip off at the moment, but what is the point of leaving a home to the state if this owner could enjoy more money in their final years. I know the property could be left to a charity, but the onus here is on providing a greater income before passing away. Suggestions please.

[murraymints]

why not ?...take advice.. lots of plans like this...which ? age concern ?

[factor-fiction]

There are some good equity release firms out there. It make sense in the circumstances you describe. But if you are unsure you may want a solicitor to look through the contract.
CAB will advise- they may have a fact sheet. Saga can help too

[rodders123]

Hi,
If I were in your position, I would certainly consider some form of draw down. You are on your own, so give yourself some extra fifancial security.

[Graham-W]

In the above circumstances I'd have no qualms about equity release to improve my quality of life. Do the world tour and live the life of Riley. You've earned it, you spend it.
Just find the best one you can regarding interest rates, % drawdown etc. You could write a will specifying that any residual value in the property should go to a charity of your choice.

[Hymie]

Something else to consider is whether the person is receiving any means tested benefits that would be lost as a result of having the extra income.

[EDDIE51]

Age concern and Shelter the charities have advisers for things like this. The advice is free and they do not ask for a donation . They have approved schemes that will not cause additional problems and will not rip you off.

[EDDIE51]

AgeUK is the new name for age concern here is the fact sheet for their approved equity releaase plans.
http://www.ageuk.org.uk/products/financial-products-and-services/equity-release/
These plans are specifically made for people in the situation you describe and are safe.

[Graham-W]

BTW If you don't release the equity and spend what you want, if you end up in a care home the council will want the bulk of your equity to pay for your care. Better for you to enjoy it while you can instead of giving it to the council..

[murraymints]

Agree ethan..