home reversion equals homeless??

dalyanrobbi

In 1997 my father took out a home reversion scheme on the family home. He retained a 22 per cent share of the value. In 2008 he died and we relocated from abroad to care for my mum at home. A couple of years back Windsor Life (now Reassure) got cold feet at the idea of us living as carers in 'their' property and bullied us into signing a disclaimer. Mum has just died and on top of our grief we now face the prospect of losing the place we've been living in for the last four years. We cannot afford to rent at present (plus we have inherited the family dog!). As I understand it, as soon I inform them of Mum's death we will have 28 days to clear the property (ourselves included) unless we can negotiate a stay of execution. I am very tempted just not to tell the company about Mum's death until I've sorted out Mum's probate or at least found us an affordable place to live in the short term. As I see it the worst the HR company could do is try to evict us (I believe we're what's known as 'excluded occupiers') and the worst we could do is squat. They may deduct any costs from our eventual share but set against paying up to £600 a month in rent on the open market, this may still be a better deal.

Has anyone else ever been in this awful position and what if anything have you done?

By the way, we have misgivings about how the policy was originally sold and the Financial Ombudsman is currently investigating this. It could be a useful stalling technique. But if I tell the FO that mum has died will they pass this info on to Windsor Life?

Thrugelmir

Your responsibility to inform Windsor Life. Who are the executors of your mothers estate? As they have legal responsibilities which if not performed correctly, potentially become their personal liability for.

dalyanrobbi

I am the executor and sole beneficiary so the buck stops with me!

Thrugelmir

dalyanrobbi wrote: »

I am the executor and sole beneficiary so the buck stops with me!

Then you need to act on behalf of the estate and put any self interest to one side. As the two matters are unconnected.

dalyanrobbi

I understand this but have to weigh up imminent homelessness against the prospect of being taken to court. What is the worst that the HR company/the law could do to me if i sit on the information for a few weeks?

Thrugelmir

dalyanrobbi wrote: »

I understand this but have to weigh up imminent homelessness against the prospect of being taken to court. What is the worst that the HR company/the law could do to me if i sit on the information for a few weeks?

Is there any equity left after the debt is settled?

dalyanrobbi

The property was valued at about £120,000 in July 2011. My father retained 22 per cent of the value; the HR company takes 78 per cent. Thus my equity would be in the region of £26,000 after any fees etc are paid. In addition, my mum's estate is worth approximately £27,000.

opinions4u

dalyanrobbi wrote: »

I understand this but have to weigh up imminent homelessness against the prospect of being taken to court. What is the worst that the HR company/the law could do to me if i sit on the information for a few weeks?

Hold you personally liable for any losses it generates for them.

Thrugelmir

dalyanrobbi wrote: »

The property was valued at about £120,000 in July 2011. My father retained 22 per cent of the value; the HR company takes 78 per cent. Thus my equity would be in the region of £26,000 after any fees etc are paid. In addition, my mum's estate is worth approximately £27,000.

Then no reason for you to be homeless in the longer term.

Are you continuing to pay the mortgage?

dalyanrobbi

There is no mortgage. Parents owned the house outright when they took out the home reversion scheme. And I'm not worried about the long term, it's the short term which concerns me. Put bluntly, I've just nursed my mother through terminal cancer which was only diagnosed at a late stage just two weeks ago. Right now I am in shock. I do not have the wherewithall to make all the phone calls, deal with callers, arrange the funeral, pack up the house and find somewhere to live (which will accept a dog - not easy) in the next month. I just need a breathing space.

opinions4u

Assuming there is no unreasonable delay, I don't think there is anything wrong in deferring notification until after the funeral.

I don't know what the terms of the agreement with the life assurance company say. But I would assume it actually states notification periods and what happens afterwards. I assume the property needs to go on the market at some stage.

While there are obviously costs, employing a solicitor to wind up the estate and protect your interests with the home may be worth consideration.