Equity Release On Ex-Council Flat

Schumacher

Long-time follower, but first-time poster here,

Can anyone possible help with some advice on Equity Release on an ex-council flat.

My 80-year-old widowed Mother-In-Law purchased the property outright in 2002 and lives off the basic state pension.

She is now thinking of releasing some equity to help with her quality of life and health issues and we were advised to look into the possibility of Equity Release.

However, we seem to be finding it difficult to find any company willing to lend on an ex-council flat.

It is a first-floor property in a four-story block (built in the 1950s) on a long-term lease with the day-to-day running of the block being performed by an ALMO organisation, but we think the council is still the leaseholder.

Are there any companies out there who deal with this kind of property and could someone please explain why companies seem so reluctant to go near it?

Thanks

poppy10_2

Schumacher wrote: »

Are there any companies out there who deal with this kind of property and could someone please explain why companies seem so reluctant to go near it?

Look for a 'lifetime mortgage' from a reputable company that is a member of SHIP, a trade body which self-regulates such mortgage issuers. There are a lot of sharks out there. With a lifetime mortgage, your MIL can release equity but wouldn't have to make any mortgage payments, the interest and debt will be rolled up and repaid out of the estate when she dies.

Schumacher

Thanks,
Poppy10 -- we'll
Look on into it

Schumacher

Sorry, I meant we'll look into it