Is equity release a good option for my father?

MarkAlexander18

Hi guys. Not sure if this is the correct place to post this, but thought I'd write this here. My father is 73 years old and lives off of solely his pension. He does not have a mortgage on his property any longer (was paid off about 10+ years ago) and has been considering equity release to help him financially.

As he is only living on his pension, he isn't living off much money. He currently owns a two bedroom semi-detached home in a cul-de sac. He has said he doesn't particularly feel like moving again, especially any time soon as he only recently moved about three years ago and downsized from a 3 bedroom semi.

Honestly, I have told him it's his money and he can decide to do what he wants. Considering he is getting older, it's his choice if he wants to enjoy the rest of his later years with some extra money in the bank.

I have read a bit on equity release and it seems like a decent option. Barring downsizing to maybe a one or two bed bungalow (which he doesn't seem keen to do) this is the only option out there. The one question I do have is, how does the interest work exactly on equity release plans, and is there a way of paying off the interest every year without having to pay back a large chunk when my father dies or goes into care?

I would be grateful for any advice you can offer.

Socajam

I would do a thorough research on equity release: pros and cons and think seriously before moving forward.
Do you have your own house?
Is there any way, your father could sell you the house say 100,000 pounds and live on that money.
If you have other siblings, you will need to ensure that a secure agreement is drawn up so that when your father dies, this money is returned to you before the monetary value of the estate is distributed.
You have a lot to think about, but equity release would be my last option.