Realising the Value on a House schemes

[Whickerman]

My Mother's reaching her buss pass, and is tempted by those ads that offer to give her an income or lump sum with no repayments until after her death. She's got all of our support on this, but has anyone on here used them, and if so how do they work and what are the potential pitfalls?

[velvet lady]

i would be very careful as these companies are a money making scheme and are only in it to make money off your mum. get lots of advice and maybe she could consider a home retirement plan with someone like the halifax? at least its an honest company/

[Whickerman]

thanks VelvetLady

These schemes are run by pretty much all of the banks here in Ireland, so they're very much regulated (although we realise they're not doing it out of the goodness of their hearts - they're there to make money out of the deal). I guess the question should be rephrased slightly - what do you think she should look out for as danger signs that would put her at a disadvantage, or impact on her ability to live in the house as long as she needs to, or the share that she'd continue to own?

[fourteen85]

There was something on radio 4 recently about some of these schemes whereby you sold your house to a company, of course you didn't get full market value, then rented it back from them. All very well until the rent was increased so much that you cannot afford it and then ended up homeless

[velvet lady]

so, whickerman is irish, phoar, does it for me!!!!! i love the irish accent ina man. hello!!