Equity Release tricks...

cronologic

Hi,

My nan has just died and she handed over 40% of her property to an equity release firm. It would appear to be property reversion scheme - but I still need to work my way through all the paperwork to confirm that.

Putting that to one side, I'm writing to find out about the sale: Will the equity release firm also pay for over 40% towards the sale of the house, i.e., towards estate agent fees or our we, as the majority owner, legally obliged to soak up that cost?

Please advise.

jonesMUFCforever

No I'm pretty certain you will be stuck with all costs with the sale of property.

iolanthe07

I am executor for my in laws who have both died within the last year. The scheme they bought into was an absolute rip off, I'm amazed that it was legal. The scheme involved them selling the house to the bank for a knock down price of £70K in 1999, then £60K was invested into an annuity which gave them the princely sum of £170.00 a month. They received cashback of £10,000.

The house sold earlier this year for nigh on a quarter of a million pounds, but all my mother-in-law (who by then was in a nursing home) received was 5% - less than £10,000 after fees. Of course she was liable for all legal costs and estate agent fees as well.

I do hope your nan didn't buy into anything as bad as this.

andyfromotley

The answer will obviously be in your t&c's. Sadly i am fairly certain that it will say that its down to you. I think these products as they stand right now are horrid, yuk.