What is equity release

Leedash

Hi all what is equity release ? my grandfather had some company talk to him about this,his house is worth say 170,180,000,he said they would give him around 60-70,000 equity ? im cluleless,we are all in the dark,he 80 in years and we dont want him getting ripped off.

[Deleted User]

http://www.moneysavingexpert.com/news/protect/2010/06/should-you-equity-release

http://en.wikipedia.org/wiki/Equity_release

You'll need to research the equity release company separately (and this should be your primary point of investigation) however those two links will cover what is equity release and if it's a good idea for your grandfather.

sandsni

Equity release basically means someone giving the homeowner cash in return for a share of (and therefore a claim on) their house. However, these companies seem to prey on older people by telling them how much easier life would be if they had some cash in the bank for themselves or their families. Chances are whatever they offered wouldn't be anything like what the share of the house is really worth.

I'm sure someone more knowledgable than me will be along shortly to explain the legalities, but my gut reaction would be to tell the company to b"gger off. The roof over your grandfather's head is worth more than they could offer.