Equity release question

Daveindorset

Hi There, First time posting so I hope i'm in the right area!!

My grandparents took a loan out in 1992 for 25,000 which was like a equity release scheme. My grandparents have since died and the property is now for sale. However the original loan of 25k has now to be paid with interest which now totals over 70k!!

Is there a way of negotiating this down as it seems very extreme. I am gobsmacked that my grandfather took this loan as he was very savvy when it came to finances.

Loan is with C&G. Any advise?

opinions4u

Daveindorset wrote: »

My grandparents took a loan out in 1992 for 25,000 which was like a equity release scheme. My grandparents have since died and the property is now for sale. However the original loan of 25k has now to be paid with interest which now totals over 70k!!

Is there a way of negotiating this down as it seems very extreme.

It works out at an average interest rate of between 6.0% and 6.5%. In what way is that extreme?

I am gobsmacked that my grandfather took this loan as he was very savvy when it came to finances.

He was. He got to enjoy the money while he was alive and reduce IHT liability for you! You can't take it with you.

Conrad

No way you can reduce it. You will be pleased of course he enjoyed £25000 rather than leaving it to you, as that way he got to enjoy the cash.