Equity Release and Compulsory Purchase Order query

missymoneypenny

I am considering equity release in the future on my property, I do not wish to move (I realise that this can change), have no children, and to own the property out right. I realise there are a lot of shortcomings with ER and I'm not saying that I would do this for sure.

But one thing that occurs to me is that because it's a coastal property - it is possible in future with climate change and increasing storms that the house could be compulsory purchased by the council in the event of landslides etc. I'm just wondering what impact this would have, in relation to a situation where an equity release company owns the property  or perhaps they don't own the property, and it would be the same as if I sold it? I just have to repay the equity release company upon the sale, compulsory or not?

Any thoughts? Also, can one rent out a property that has equity release taken against it? Trying to weigh up possible options.

Many thanks for your consideration.

user1977

Not sure how it would be dealt with in that scenario, but if it's that likely to happen, then I would expect the property not to be acceptable as security to an ER provider in the first place - I think they tend to be on the fussy side, and by definition are looking further into the future than standard mortgage lenders.