Lifetime Mortgages

3jays

Hi
Has anyone managed to reduce the debt (left by a deceased parent) to a bank for a lifetime mortgage (equity release). I lost my mother in August and am querying the advice (or lack of) she, as an elderly lady, was given back in 2005 when she took this out. Interest is still accruing so am trying to have that frozen too.
What a nightmare! Causing major issues with legacies too as not enough in pot to go round because of bank/financial advisor's short-sightedness!
Thanks

dunstonh

as anyone managed to reduce the debt (left by a deceased parent) to a bank for a lifetime mortgage (equity release).

There was some issues with equity release back in the 80s and early 90s but you tend to find no issues in the 2000s.

Interest is still accruing so am trying to have that frozen too.

Until the debt is repaid then interest will be chargeable.

What a nightmare!

Not really. That is what happens when you borrow money.

Causing major issues with legacies too as not enough in pot to go round because of bank/financial advisor's short-sightedness!

Sounds more like greedy beneficiaries not happy that their inheritance is going to be smaller than they thought.

magpiecottage

What are you suggesting OP - that your mother should have gone without the benefit of her assets so that you could inherit them?

The reality is that the adviser's primary responsibility is to his client, not those relatives who might be disgruntled that money they were hanging around like vultures to inherit has already been spent.

The fact that your mother might have been elderly does not mean she was stupid. She will have been given a proper illustration indicating how the interest would roll up.

The loan was probably a Safe Home Income Plan (SHIP). That means not only would the financial adviser have explained the implications but so would an independent solicitor. Only if both were satisfied that she understood would the loan have gone ahead.

In addition, SHIP members gave a "no negative equity" guarantee.

Incidentally, the beneficiaries have no right of complaint against the lender or adviser. In theory the executors might have but in reality there are no grounds for doing so.

I suggest you let the executors sell the property, repay the loan and divide whatever is left.

Then move on.

roonaldo

3jays wrote: »

. Interest is still accruing so am trying to have that frozen too.

your missing the whole point of the lifetime mortgage.