Scheme whereby house becomes buiding society's upon death

Laurence_WMF

I remember reading about a building society arrangement where you live in a house as your property on favourable terms, but the house becomes the property of the building society upon your death.

Do you know what I'm talking about? If so what is this scheme called, and where could I find out more about it?

Thanks very much indeed,
Laurence

Laurence_WMF

theartfullodger wrote: »

Extreme equity release...

Do you want to or is this just a curious query??

Many thanks. I'd like to find out more about it before I decide how serious I am about taking one out myself.

Laurence

Laurence_WMF

Oh, ok, I get it.

Anyone know what I am talking about?

TrickyDicky101

This would be a home reversion plan which is a form of equity release. As far as I know no mainstream lenders offer this and it will only be available via an IFA. You effectively sell your house to the funding provider but retain the right to continue living in it until you die (you must usually maintain the property too). The amount of money the lender will be prepared to pay you will depend on several things including property value, your age and the % of the property you are selling (which may be less than100%)

martindow

This used to be quite common in France and maybe still is. Jeanne Calmant signed an agreement with her lawyer when she was 90 that he would inherit her flat in return for payments of 2500 Francs per month until her death. She then went on to live for over 30 years more. The lawyer died in the meantime and his widow was obliged to continue the payments. Twice the value of her flat had been paid out when she died.

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

Laurence_WMF

Thanks a lot Dicky and Martin.

Lawrence

carefullycautious

Not sure of your age but if you are getting into difficulty your local authority may be able to help with rehousing. Contact shelter and they be able to advise on best course of action.

Have you thought about downsizing (not sure what you are in at present)

Laurence_WMF

carefullycautious wrote: »

Not sure of your age but if you are getting into difficulty your local authority may be able to help with rehousing. Contact shelter and they be able to advise on best course of action.

Have you thought about downsizing (not sure what you are in at present)

Thanks for your concern. I'm not in difficulty at all. I own a house without a mortgage.

From what I recall, it just seemed like a good deal if you have no offspring and aren't much concerned with what happens to your property after your death. What I read didn't present it as an extreme or unusual deal. Wish I could remember where I read this.

Laurence

Laurence_WMF

The Wikipedia page on 'equity release' was the starting point I was seeking. 'Home reversion plan' and 'lifetime mortgage' were the terms I was seeking. Thanks again to Trickydicky.

Any general advice on pros and cons of these would be welcome.

Laurence