To think he could pay some off himself?

[Cobblersandhogwash]

My dad took out a £30k loan. One of those loans that are equity release. He has a flat. He’s spent the money. I don’t really know what on.

The loan has grown to £50k over six years. Dh and I have said we will pay this off for him but can only do it early in 2018.

We are worried that he will in effect have sold his flat for £30k. Top floor flat so when he becomes frailer, he would have to move to a more appropriate property.

But if he has to pay off this loan with the sale of his flat, he could end up with very little cash with which to buy another.

Meanwhile, he’s making zero payments on this loan. So I expect by next year, it will be more than £50k.

Aibu to be irritated by this? He should make some payments? He goes on holidays, has a cleaner, socialises lots. Has a great retirement which I’m delighted about.

Aibu to say to him our limit is £50k? But then if he doesn’t pay off the rest, our contribution is pointless as the interest will continue to grow?

Why do you have to pay it? It's not your loan?!

Imo he should make all the payments!! Has he frittered it all away knowing you would bail him out?

Hello.

I'm not sure why you are paying the loan off for him? Not sure if I have missed it.

If you are determined to do this, maybe you should sit down and say....if we split the loan, how would you manage you pay back you share and see if he is prepared to budget?

Agreed that he should help repay.

Another one here who doesn't understand why you are paying his loan off?

Why on earth are you repaying a loan someone else took out?

He should make some payments? He goes on holidays, has a cleaner, socialises lots. Has a great retirement which I’m delighted about.

And isnt paying his loan? Why on earth would you be paying it then, I dont get it???

It’s not your loan so don’t pay it off.

Whether he should be making repayments or not is entirely dependent on the terms of the loan and a subjective assessment of what is the best option for his personal circumstances. Nobody on here can possibly know based on a few posts.

How was the loan arranged? Has he taken proper advice? Equity release is a complicated area and needs specialist advice.

"Dh and I have said we will pay this off for him"

Why?

Why on earth would you pay this off for him?! He clearly doesn’t manage his money well, by paying it off for him you’re just enabling him.

You need to stop offering to pay off his loan without knowing what kind of deal he has made with the equity release company. Also if you did pay it off there would be nothing to stop him borrowing again.

I suppose the point of equity release is so that he can afford holidays, help etc. However how has it risen to 50k in 6 years, has he taken more or is the interest rate extortionate? Why is he not servicing his debt? Effectively you would be subsidising his lifestyle.

So many assumptions on this thread... and so little understanding of what equity release is!

Why on earth would you pay for this loan?

If you pay off the loan do make sure you are protected. I am assure the legal bods on here can advise by putting a 'mark' on the property that he cannot take out anymore loans on it with you knowing.

And yes, I think you do need to have a discuss about how you BOTH go forward with these payments. Even a token sum or finding out what the loan was for. 30,000 is a large sum to take out with no particular plan.

Would you get a share in the equity if you paid this off? This is the only possible reason I can think of for doing this, and it would to some extent protect your money.

No. Dont pay it off. That would be an insane thing to do. The only thing to do if it is a equity release is keep an eye on interest rates because you can remortgage if you can get a lower rate.
Other than that he has made his choice. My pil did this against my advice (they could have just moved). But it was there decision.

Unless this flat is worth a huge amount I cant see the benefit to you, if you do I would get it signed over to you so he can’t
do it again.

Why on earth are you paying it?!

Also, if he knows you're paying it off then he won't alter his spending as you're bailing him out regardless.

How much is the flat worth if he was to sell it. Your FIL will not end up homeless the council would house him in an appropriate property. Honestly he's old and frail let him enjoy his final years.

This is an adult with his own property. You can’t just tell him what to do or “sign it over” to the op. Maybe he doesn’t want to do that? Would you want to sign over you’re properties to someone else because they said so?

Your properties.

Enthusiastic predictive text since update driving me crazy!

Don't pay off his loan! Why would you?? Let him sort it out. He took it out and he's spent the money. If you pay it off, what's to thim doing the same again?

*stop him doing

Don’t pay it off. If your dad needs to move, and has insufficient capital, you could at that point put your £50k in, if you were so inclined, but only on the basis that you are part owners so you can secure you’re investment

it's very generous of you to pay off this massive loan OP