Anyone come across this property/bank income suggestion before?

Baz_2

My inlaws have had a IFA to see them and he mentioned that there may be a new type of income investment for them to take advantage of. I don't have much in the way of details about this but from what I gather it works a bit like this.

They will allow the bank to include their mortage free house on their books and in return they will recieve a fee or a rent etc of around £300 per month for a set period of around 3 years. The house is valued at £153,000. They will retain ownership of the house at all times and it is not an equity release scheme. The idea being that having a loan free house on the banks books will help to give the illusion of a good balance sheet for them.

The IFA said this has not started yet and is about to come in some time in the future. He is a reputable IFA with a reputable firm so there is no way this is dodgy but it sounds a bit too good to be true. There are a few obvious questions such as what happens in the event of death, or moving to a care home etc etc..... and I assume they cannot move within the time period of the agreement.

I have tried googling this but didn't know what to search for and what came back was nothing like this.

Anyone heard of this?

googler

So many questions. Do you SELL your house to the bank?

How do you get your house back after the three years?

oldfella

this sounds like the scheme discussed on Moneybox last week. Their advice was wait for more information.

Baz_2

googler wrote: »

So many questions. Do you SELL your house to the bank?

How do you get your house back after the three years?

Nope, the house remains yours. And I assume the contract drops off after the period ends.

oldfella wrote: »

this sounds like the scheme discussed on Moneybox last week. Their advice was wait for more information.

I will have a look on moneybox, do you have a link? J

Edit Found the transcript. In pdf.

http://news.bbc.co.uk/1/shared/spl/hi/programmes/money_box/transcripts/money_box_04_sept_10.pdf

Seems to be run by a company called Equity IQ. Wait and see is the advice.

Oh and other threads on here

https://forums.moneysavingexpert.com/discussion/2650433

https://forums.moneysavingexpert.com/discussion/2705169

Sounds a bit morally challenged though.

Reaper

The thread where this has been discussed in the most depth is this one on the Pensions board: https://forums.moneysavingexpert.com/discussion/2650433