Selling a House but still living in it

Moncs_2

Mt friend's dad is looking to sell his house in order to raise some money to live out his years and also to pass on some money to his children.

I read a while ago there are companies who will purchase your house, and let you stay there until you pass away then the house becomes theirs. Does anyone have any information on this and indeed advice?

knuckledragger

I'm sure I read somewhere on here recently that equity release schemes were falling out of favour. More information would be needed to assess his best course of action.
One suggestion could be to sell the house outright then bank/invest the cash and rent for the remainder of his life. Depending on age and the amount raised this might suit.

GDB2222

Equity release usually implies a loan where the interest rolls up and it is then paid when the house is eventually sold.

Alternatively, look at outright reversion sales, which are exactly as you described in your original post - sale of house (at a discount) but Dad gets to live there for rest of his natural. Just look up 'Home Reversion' to find firms that do this - one that springs to mind is called Cavendish.

Ian_W

Funnily enough there was quite an interesting article in the local rag about "equity release" last night. See

http://www.manchesteronline.co.uk/men/personalfinance/s/166/166116_a_release_from_the_poverty_trap.html

It had some case studies in the paper which aren't included in the online article. It covers both equity release & reversion which are explained and has some contact details. It suggests that these types of scheme is growing steadily as us " wrinklies" are assett rich but cash poor [oh, were that the case!!! - cash poor, assett poor, !!!!!! poor, need I go on!!]

Should give you a good starter, but you could also get some impartial advice from

[URL=http://]http://www.helptheaged.org.uk/Money/Investments/equityrelease/default.htm[/URL]

and

[URL=http://]http://www.ageconcern.org/AgeConcern/information_794.htm[/URL]

Best of luck with efforts to assist.

P.S. I'm no expert but earlier advice to sell up [in a falling market!!] & rent is NOT IMHO very sound advice - at least all these schemes guarentee you can stay in your own home until you die or go into long term care. Don't know any private landlord who'll guarantee that if the money runs out!!