Retirees with liquidity problems are offered a new type of loan by Legal & General to remodel dilapidated homes
- L & G launched a lifetime mortgage for senior owners
- The money will be returned after the owner has died, with interest
- The bosses have tested the scheme in cities like London and Birmingham
City and Finance Reporter for the Daily Mail
Retirees trapped in a dilapidated house they can not afford are offered a new type of loan by the Legal & General savings firm.
L & G has launched a lifelong mortgage for older home owners to borrow cash against the value of their properties to renew it.
The money will be returned after the owner has died, with interest, using the proceeds from the sale of the house.
Pensioners trapped in a dilapidated house who can not pay are offered a new type of loan by the legal and general savings firm
The bosses have tested the scheme in cities such as London, Oxford and Birmingham, working with charities to identify the vulnerable people who urgently need the money to stay in their own home.
The company's lifetime mortgage department, which sells loans to a wide range of clients seeking free equity on their properties, made £ 500 million in the first six months of 2018, 23 percent more than a year earlier. .
Chief Executive Nigel Wilson said that up to 1.5 trillion pounds of wealth is locked up in the homes of the elderly, and that this could be spent elsewhere.
He said that about 1 million retired couples do not have children, and keeping their properties for heirs will matter less.
L & G saw mid-year earnings fall 19 percent to £ 942 million compared to the same period in 2017, but raised the interim dividend by 7 percent to 4.6 p per share.