Renting Equity of your house?

[oldexpat]

My friends brother works for a finance company and he has come up with this deal of renting 100k of your property value for insurance companies. It is over 3 years and they give you 5%pa rent of half the value of your property. They pay for all the property valuation etc. They say they 'take charge' of half the property but the title remains in your name. It claims that if the insurers default on the rental payments on your property then their contract states that the charge over your property is released.Has anybody else heard about anything similar? Oh and also it may affect your rights to benefits etc.

[Count-A-Strong]

I don't see what they get out of it.

[oldexpat]

Well the finance company get 5k for every deal they get and the insurance company have more equity on there books therefore allowing them to insuring more and generating more business. I think.

[Count-A-Strong]

Sounds very odd to me.

[oldexpat]

Yes me too.