Hi
Firstly, I would like apologise for the vague details but my in-laws are very cagey on this subject and have given little information on the scheme they have entered into.
They had an endowment mortgage and like most endowments it didn't mature well enough. Hence, they were forced to sell their home in order for them to retire. And this is were it gets vague...
They found a company that would buy them a house. My in-laws found a house which the company bought and owns 75% and they own 15%. They had to pay a one off payment of around £140,000(?) in order to live there for the rest of their lives rent free. If this is the case surely in order to get value for money they would have to live an extremely long time in that property. However, they kept spending lots of money renovating the house, new kitchen, conservatory, new bathroom, windows, the list is endless so much so they cannot afford to retire and they both work (they are in their mid 70s).
I know it's not unusually for people to release equity in order to retire, we bought my parents house for them to live rent free so they could retire which is now burden 10 years on as running two mortgages and a young family isn't fun. I am determined not to do this to my children but that's a different story.
As anyone heard of such a scheme and can shred some light? My mother in law is a clever lady albeit rubbish with money so I think the vagueness is down to embarrassment more than anything else but we are worried about the scheme.
Thanking you in anticipation.