Anyone know about equity release schemes?

[KBear]

ie when you've paid your mortgage off and then you borrow money on the strength of its value (in retirement for example) and pay it off on the sale of the property after your death.

Does such a scheme exist?

Yes they do exist and from what I know - my IL's looked into this - the companies that operate them are commonly known as loan sharks. The fees are absolutely extortionate!!!

Agree that they are extortionate. You'd be MUCH better off selling the house and buying a smaller one. Equity release schemes cost an arm and a leg. Depending how long the property owners live, there could be nothing left by the time they die.

I am sure that some banks buy your house from you but allow you to live in it for the duration of your life or until you need to move. Dh says thats what 2 sisters who live next door to his mum have done. they have no family to leave it to and so the bank now owns it but they can stay in it forever if they so wish. I would expect banks to be more trustworthy that fly by night companies as long as solicitors watch over the buying etc.

I found some info on the Help the Aged website and it seems that there are schemes which aren't run by dodgy companies but agree, need to look into the carefully and take legal advice. thanks

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Thanks Orinoco