Home Equity Release options.

[ipek]

Has anyone any experience of these (either good or bad) that they can enlighten me with? My parents have got to the stage where this concept looks like the ideal way of giving them a lump sum for maybe holidays and perhaps even a small regular income. However, the ones that I've looked at, do seem to be heavily weighted in favour of the lender. I appreciate that it's a business, but they aren't going to lose out anyway. For example - if you sign over say 50% of the value of your house, then I would expect to get 50% of it's current value in exchange for 50% of it's value on sale going to the lender. But that doesn't seem to be the case. Any experience would be welcome as would any better ideas...

[wildwood]

Have you (and perhaps together with brothers and sisters if any) thought about taking out a mortgage on your parent's house to, say 50% of it's value? That way the money stays in the family and no greedy money lender is going to get their paws on the fruits of your parents' labour. If you're alone and can't afford that, an 'interest only' mortgage may be an option.
According what you write on your parents' situation, the eventual interest paid will be a lot less than the amount that will be lost in the end.
It is sad that there are not more considerate persons like you, who wish their parents to at least enjoy some of their money while they can. Good luck.