Equity release bit of a strange question

Discussion in 'Mortgages' started by sie16b, Nov 28, 2017.

  1. sie16b

    sie16b New Member

    Hi

    I have a question if anyone can help about equity release and buying it

    Regards Simon
     
    Last edited: Nov 29, 2017
  2. Longterminvestor

    Longterminvestor Active Member

    So you are trying to buy back the outstanding equity release payments and effectively buy back the stake the equity release company holds in the property? One issue I can see is a change in the value of the property over the last 8 years - I presume it has increased as the equity release would have been near the start of the worldwide economic collapse?

    I would also guess the terms would have been favourable to the equity release company?
     
  3. Veronica

    Veronica Administrator

    Also I believe with these schemes there is compound interest to be paid so that could be hefty.
     
  4. nmb

    nmb Well-Known Member

    In reality these deals are structured so that they are often uneconomical to try and reverse. At the end of the day, when the deal was struck it was in the best interests of all parties at the time. However, maybe the structure/cost of these deals should be reviewed by the regulators?
     
Loading...

Share This Page