equaity release & advice

carlos700

I need some advice for my parents they bought there council house many years ago from the council they only paid £8000 for it so they have been morgage free for many years .My dad is 65 years old and my mum is 62.

The problem is now my mum and dad have had lots of no so good luck over years mainly with my dad being very ill .My mum and dad can see now that they have nothing there house badly needs repairs doing and updating but they have no money to do it .They have never been on holiday ,they struggle for everything .My dad is saying which i suppose he is right all there money is tyed up in there house ,houses in there street even though it is a council house are selling for £100,000 - 120.000 .My dad wants advice on these companys which buy your house off you and rent it back to you or equaty release companys how do they work ?

I suggested they sell and buy a cheaper house but to be honest i do not think there is anything avilable in there price range .My mum just wants to leave things how they are its my dad ,i do not know what to advise i do see it from my dads side when my dad says is this what life is going to be like until they die having no money and doing nothing .I would appreciate any advice .

RAS

Hi

Your parents need to be very careful about these companies who buy houses for less than the market price, do it up and then rent it back, as generally there is no security of tenure. A[URL="file://\\also"]lso[/URL], they would then become ineligible for benefits because they had too much cash.

Start by going to www.entitledto.com and check if they are getting everything that they should?

Check here http://www.warmfront.co.uk/do-i-qualify.htm in case they are able to get help with heating and insulation. And check with your local council in case they have a scheme for older householder neding help with repairs.

Given their age, they are probably too young for equity release. You could also post up an SOA so that people can help find ways of reducing their expenditure, see here for how to do it http://forums.moneysavingexpert.com/showthread.html?t=107280,

Personally, I would think that selling and buying somewhere smaller might be a better option in the medium term, but lets see what the situation is first.

Jacks_xxx

:hello: Hiya hon,

I know that those companies that buy your home and rent it back to you can be shonky - I've heard lots of horror stories whre they kick you out after a year or two and sell your home from under you. :mad:

I don't know much about equity release either, but the CAB can be very helpful. If your parents could make it down to the local office I bet one of their financial guys would go through it all with them.

Another thing - if your dad's been poorly and they haven't got much money coming in, are they getting everything they might be entitled to?

You can check here:

http://www.entitledto.co.uk/

What a total sweetie you are to try and help them out! :kisses3:

Even though I haven't been much help, this will bump you to the top where somebody more useful might see it and be more help - hopefully!

Love Jacks xxx

littlewren

RAS wrote: »

Hi

Given their age, they are probably too young for equity release.

I have to say again that 60-65 is not too young for Equity Release. The one I've been looking at - Age Partnership - offers it from age 55.