Any drawbacks to shared ownership?

voucherqueen_3

My mum was thinking of downsizing by selling her property (approx £130K) to a retirement flat £66K plus £130 a month rent (I think this would be a 50% share),.

She hasn't got a mortgage and personally I can't see how she would gain from this.

Fair enough she would release some equity but surely this would be eaten away with the £130 month rent payments. She hasn't got an income at the moment, apart from a widow's pension. She is 56.

There might even be another monthly fee for upkeep of gardens etc.

I think it would be ideal for someone with a lot of equity in their property but not for my mum.

lynzpower

later on tho, its usually in a years time, she can buy extra shares, up to 100%
Id anticipate that she would be left with somewhere around 60k "profit" which in a good enough bank acocunt such as Icesave, shed be making more than 300pcm interest before tax. which would more than pay the rental share in a year.