Advice needed Re Parents sold house to Norwich Union

Herbie34

Hi

Just looking for some advice.

My parents, a few years ago sold their house to Norwich Union under the scheme where they give you some money (A loan?) and then its paid back in the event of their death from the sale of the house. They also stay living in the house until they die.

My parents havent said much about it since, apart from the fact that I am named as the contact for Norwich Union in the even of their death.

I have no problem with all of this, but just wanted to ask if anyone here has dealt with this before? Would I have to sell the house and then hand the cash over to Norwich Union, or do they take control of the house and sell it themselves? Also, there would be solicitor fees and estate agent fees, so who pays them?

Im basically asking if all of this will fall onto me to sort out and I'll be the one having to sell the house, pay solicitors, agents etc?

Grateful for any advice.

Thanks

timmyt

Herbie34 wrote: »

Hi

Just looking for some advice.

My parents, a few years ago sold their house to Norwich Union under the scheme where they give you some money (A loan?) and then its paid back in the event of their death from the sale of the house. They also stay living in the house until they die.

My parents havent said much about it since, apart from the fact that I am named as the contact for Norwich Union in the even of their death.

I have no problem with all of this, but just wanted to ask if anyone here has dealt with this before? Would I have to sell the house and then hand the cash over to Norwich Union, or do they take control of the house and sell it themselves? Also, there would be solicitor fees and estate agent fees, so who pays them?

Im basically asking if all of this will fall onto me to sort out and I'll be the one having to sell the house, pay solicitors, agents etc?

Grateful for any advice.

Thanks

equity release mortgage.

you need to repay them and if the hosue is the onyl asset, you hjave a set period to sell within, failing which NU might take over.

you pay fees out of the net proceeds as NU just have a mortgage. They don't share in your fees.

Herbie34

Hi

Thanks for your reply.

As far as I am aware, NU own the whole house and its entire value, they hold the deeds to the house and it belongs to them, so I cant understand why they are not having to sort the sale of the house and pay all of the fees, its strange. I will have to see what info I can get from my parents, they are not great with this type of thing because I dont think they can remember much about it.

lincroft1710

NU are now known as Aviva.

There are several types of equity release schemes. One example is where the ER company loan a lump sum using the house as security and the loan should be paid back in monthly instalments. Because the interest accrues if no repayments are made, then in such circumstances the house can become the lender's property in only a few years. From what you have posted it would seem that NU bought the house outright and either allow your parents to stay there for the rest of their lives or they may be paying a nominal rent.

The only way you can find out exactly what your parents have signed up for is to read their copy of the agreement.