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Surrendering an endowment
Peapod2
Posts: 21 Forumite
This was in my husbands name and he surrendered it so there was nothing to pay of the joint mortgage. Is this legal?
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Comments
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If he had sole title to the policy and it wasn't assigned as security, he could do what he wanted with it. Sorry.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »If he had sole title to the policy and it wasn't assigned as security, he could do what he wanted with it. Sorry.
The thing was when we took out the mortgage it was and was kept with our solicitor until the Government changed the rules and it could be kept by the owner.0 -
Exactly. It wasn't assigned as security for the mortgage, so he could do as he chose with what was, to all legal intents and purposes, his property.
When did this come to light?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Exactly. It wasn't assigned as security for the mortgage, so he could do as he chose with what was, to all legal intents and purposes, his property.
When did this come to light?
A while ago, but it was taken out at the same time as the mortgage and was known by the mortgage company as in situ.0 -
The thing was when we took out the mortgage it was and was kept with our solicitor until the Government changed the rules and it could be kept by the owner.
Govt hasnt changed any rules on where the endowment could be kept. Lenders could decide if they wanted a policy assigned to them or not but most stopped wanting it in the early to mid 90s.
The policy owner owns the money.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
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Peelerfart wrote: »Why did they stop wanting the policies assigned DH ?
Because they thought adults would be adults.
Plus it was very expensive to administer and this was the period when bank branches did all the work and had 4-10 times the staff they have now. It also tied in with the introduction of free banking and cutting costs had to go with it.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Govt hasnt changed any rules on where the endowment could be kept. Lenders could decide if they wanted a policy assigned to them or not but most stopped wanting it in the early to mid 90s.
The policy owner owns the money.
That was it!
Wasn't it to stop lenders from surrendering the policy leaving no money to pay off the mortgage when it was due?0 -
Wasn't it to stop lenders from surrendering the policy leaving no money to pay off the mortgage when it was due?
Assume you mean mortgagors (i. borrowers) not the lender themselves.
The issue you have is not with the mortgage lender or indeed any change in administrative procedures, but very squarely with your (I am assuming ex ?) husband ?
Its more pertitent to look at why (if you are separated), you (or your Solicitor) didn't seek assignment of the mortgage repayment vehicle as part of the settlement, along with the assignment/retaining of the mortgage as part of the separation agreement.
Hope this helps
Holly0 -
holly_hobby wrote: »Assume you mean mortgagors (i. borrowers) not the lender themselves.
The issue you have is not with the mortgage lender or indeed any change in administrative procedures, but very squarely with your (I am assuming ex ?) husband ?
Its more pertitent to look at why (if you are separated), you (or your Solicitor) didn't seek assignment of the mortgage repayment vehicle as part of the settlement, along with the assignment/retaining of the mortgage as part of the separation agreement.
Hope this helps
Holly
Sorry I meant borrowers (not with it today).:(0
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