Problems

Unlocking some of the capital value of your home to provide an income late in life has great attractions.

But there are problems to be faced as well.

Some property will not be accepted.

Normally, it must be a freehold house or bungalow (not a flat) or a leasehold flat with at least sixty-five years left. Purpose built retirement homes with a warden may not be accepted.

The property must be in a reasonable state of repair. You will have to have an inspection and valuation at a fee related to the value of the property. The fee is normally repayable once you accept the plan.

You will have to have the building properly insured against damage. You must not have tenants.

The value of the property must be at least £88,000 (some companies specify more) and you will be lent between 60% and 80% of the value, depending on the company.


Further reading - The Return Over Your Life On Your Investment

or Capital Protection

The Return Over Your Life On Your Investment

/retirement/pensions/income/advice/the-return-over-your-life.php... see: The Return Over Your Life On Your Investment