> BOI offer a Life Loan product and I know it has savage compounded interest rates.
Yes - be aware that the initial portion of the house remortgaged can very soon grow to encompass most or all of the property in a relatively short period of time. Also, these sorts of products can ALSO involve hefty charges so read the terms & conditions carefully.
> We are aware that the estate will seriously decrease in value, especially if the folks live to a ripe old age.
If this is acceptable to all, in particular your parents, then some sort of equity release as mentioned earlier MAY be a suitable option.
> They also do not want to 'trade down' to a smaller property.
To be honest this might be a better option if there was any possibility of it happening - they could pocket a CGT free portion of the resale gain and move to a new PPR.
> Would the BOI life Loan also affect their state pension entitlements?
Depends. Are they on contributory (PRSI related, non means tested) or non-contributory (means tested) pensions?
www.welfare.ie/schemes/re...index.html