Releasing equity privately

[Tiz]

My friend doesn't want to leave her house but has very little income. I could lend her some money but she would have no way of paying it back. So could I lend her money that I could have back if she the house needed to be sold or she died? Could I buy a percentage of the house off her. Could I buy the house at about 25% of its value and she continues to live in it - Thanks

[paulz]

This must be on a par with what some finace companies are offering. I'd consult your friend with your offer first [what's her opinion - she might not want to accept it?] then see a solicitor, when you and your friend are both happy [amounts, percentages etc] and make sure it's drawn up properly & legally. Also should your friend want to make her next of kin aware it? - to avoid any complications later on. Hope it works out ok

[woofgang]

The other thing that needs thinking about is what happens if circs change eg your friend needs residential care, has a partner move in with her or you need the money back, particularly if you need it back in a hurry. I'm not saying don't do it, but as paulz says, do get advice first

[woofgang]

you could take a look at http://www.ship-ltd.org for a start off point