Equity Release to Neighbour

tekton23

Hi,
We have a friend and neighbour (within the same house as us) who has stated he wants to approach a bank or lender about equity release. He is over 65 years old and is looking for additional income over and above the pension. 
I have always been interested in the flat, as a future investment. The neighbour has no immediate family and we often help him out. It is a difficult subject to broach but are there any methods or processes that allow staged equity release? i.e. if we are interested in buying the flat over time and not in a rush to do so, presumably there is a scenario (perhaps where we make monthly payments) that could be win win for both parties.
Obviously I'd want to do this in a way that is 100% secure, legal and provides confidence to both of us. Is this common and any links or leads much appreciated?

T23

Comms69

Just to be clear what is the ultimate goal?

I dont see how equity release provides an extra income to him, in fact it does the opposite - so it's abit unclear

foxy-stoat

Only 100% safe and secure way is to buy the flat and rent it back to him.

theartfullodger

foxy-stoat said:

Only 100% safe and secure way is to buy the flat and rent it back to him

Which under sale & rent back laws means he has a 14 day cooling-off period, it must be a fixed term of AT LEAST 5 years tenancy, you are a fit & proper person etc et c etc..

 See

https://england.shelter.org.uk/legal/home_ownership/mortgage_arrears_payment_problems/sale_and_rent_back_schemes#1

AdrianC

You could jointly-own the property.
Or you could lend him money, secured with a charge on the property.

Either would allow you to increase your lend/share over time.

Would you need a mortgage?