Buying a property part-owned by an equity release company

[sj4985]

Welll, just that really! Wondering if anyone has any experience of this and what the process was like?

Are they not just the same as a mortgage company or bank? Effectively they own the property because the owner took out a loan (equity release). Never do it, by the way. Downsize instead. Their rates are punative.

Seems odd that they part own? Generally equity relapse companies just have a charge over the property, like a mortgage

IF that's possible (I have no idea), I doubt it would be much different to normal sale. They will leave replies to all enquiries to the other seller. It might take a bit longer to have the contract and transfer signed.

Yes. I’m just wondering if “part own” refers to the “mortgage” or loan company and they are not actually registered as an owner. They could force a sale to repay the loan I assume.

Equity release is just a mortgage. Only difference is that the payments accumulate as opposed to the homeowner making direct payment. The debt is repaid on death or other specified circumstances, like moving to a care home.

Do t worry

I've never heard of this. Is it like other kinds of shared ownership where you buy and get a mortgage for some fraction of the property (say 50%) and the remainder is owned elsewhere (in this case by the equity release company) and you pay market rate rent on that fraction?

It's a bit more admin for the sellers side to sort out, they will have added costs etc. As long as your solicitor makes sure it's paid from the sale money's it won't be an issue to you as a buyer. It may take a little longer to sort out, but from a buyers point of view it should make a jott of difference