Example of Equity Release

Freehold Property

A freehold, 8 year old bungalow was valued by the local agents with vacant possession at £300,000. This was for sale subject to the purchaser granting the vendor a 2 year rent-free lease, to run from the date of completion.

The property, in Hereford, consisted of four bedrooms (one en-suite), kitchen, utility room, dining room, lounge and large double garage.  It was in excellent decorative order with a reasonably sized garden laid to lawn and flower beds.

This property was sold at auction for £230,000.

Equity Release

A 90% equity release in a freehold property in Somerset was sold recently at one of our auctions.

This was a freehold ground-floor flat with one bedroom, reception room, kitchen and bathroom.  There were front and rear gardens with off street parking to the front.  The flat was in a detached house built in 1920 that had been converted into two flats approximately 40 years ago.

The vendor owns the freehold of the property.  The first floor flat is held on a 999 year lease (granted in 1984) for which the vendor receives a ground rent of £10 per annum.

The property was valued by the local agents at around £120,000 with vacant possession.

The equity was realisable on the death of the vendor/occupant, a gentleman now aged 67.  There was an outstanding loan on the property of £10,500 which will be repaid from the capital raised.

This property was sold at auction for £60,250.

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