Shared Appreciation Loans!

staceylou_3

Does anyone know anything about Shared apprecation loans? My grandad died 2 years ago, and my gran is sorting out paperwork etc.

About 7 years ago they took out a shared appreciation loan with Barclays, these apparently were only available for a short time and it seems that pensioners were targeted with these.

Basically, Barclays offered a loan which didn't have to be paid back until the house was sold or upon the death of the homeowners, when Barclays will take a share of the appreciation value.

Looking at the small print now it seems that Barclays can take around a 75% share of this appreciation, they valued the house at £63,000 at the time and the house is now worth around £150, 000 plus they reclaim the amount of the original loan which was £15,000.

As you can imagine, my grandparents weren't made fully aware of this at the time and my Grandmother is devestated that the house they worked so hard for is not going to be able to benefit the family in the longterm and that Barclays are going to get a huge chunk of the money.
Has anyone heard of this before or got any ideas what can be done????

We would really appreciate any comments.

EdInvestor

staceylou wrote: »

As you can imagine, my grandparents weren't made fully aware of this at the time....

I think you'll probably find they were.

Has anyone heard of this before or got any ideas what can be done????

Nobody has yet succeeded with a misselling claim for a SAM.

epz_2

short of selling at a discounted rate to your son etc there aint much you can do, the bank did give them the money interest free for 7 years after all.