Equity release is different to a sale to rent back.
Sale to rent back means they couple were at risk of being repossessed and had to sell the WHOLE property but were permitted to rent it back – you would need to be happy that at the point it was sold, the repossession/loss of the home was a realistic property. They cant get HB with within 5 years unless youy are satisfied of this
Equity release usually is done of 1 of 2 ways – but usually involves only part of the b=value of the property being sold. options are a lifetime mortgage – where the customer can choose not to pay anything while they are alive, but the interest is compounded, or the customer can choose to pay some of the interest to reduce the loan
Alternatively they can opt for a home reversion plan, where the company buys a % of the house, but customer can live rent free in property
I think you need to see the actual equity release as it would be unlikely to a rent charge they are paying, and if its not rent, then its not eligible for HB.
