No “rent” payment here. You sell part of your home and have to pay interest on it. In ways such as set out by PB above.
If you check the Land Registry you will normally find the owner has not changed but there are more charges and with more conditions (no other loans etc) on the house. a mortgage. The interest can usually be rolled up and settled by the estate on death (any amount outstanding is usually written off).
Highly regulated scheme. “Martin Lewis thinks that equity release may be a good way to access money tied up in your home to help you enjoy a more comfortable retirement, but warns that it’s also expensive”. Yes so forget leaving money to your family.
All these schemes were great when interest rates were 0.01 but now they are going up. I dont like any of these schemes myself. Flashy adverts telling older people how their lives can be full of holidays and cruises but when the money runs out and inflation soars above double figures and interest rates soar…..
