Cashing in a Lapsed Endowment

WelshHybrid

Right, difficult one this, but I'm after some advice. In 1998 a home I had with ym ex-husband was repossessed, there was an enowment mortgage on this, which currently has an amount of money sat gathering dust. A couple of years back I was contacted by the building society about a shortfall claim on the mortgage, which I had some good advice about and so far they've backed off.

I would like to get the money that is tied up in the endowment, which I can get if I can obtain a letter from the building society stating they have no interest in this. If I write to the building society asking for this then I'm sure they would cash this policy in themselves, which they are most likely entitled to do. I do not want them to use this as an opportunity to start writing to me again about their shortfall claim, I just need something that would release these funds that will help me and my two grown up children.

I don't want to discuss the ins and outs of mortgage shortfalls and repossessions, I just want to know if anyone has any experience of this and what they did, or recommend.

Any advice or links would be most appreciated.

dunstonh

If the policy has lapsed, then it will have no value. A value will only exist if the policy is paid up. Assuming its paid up rather than lapsed...

It sounds as if the policy is assigned to the building society. This means you need their permission to surrender it. It also allows them to have first claim on the funds and have the proceeds paid to them. However, they cannot request surrender which is why they have not done it.

So, if you request surrender, the b/society will be asked and if there is a shortfall, then they probably will keep the amount they need. This would be of little use to you.

You could ask them to remove the assignment on the policy first. They may do it if they currently have no charge against a property and its possible that they wont match the endowment up against a current debt. Once the assignment has gone, the endowment can be surrendered to you.