Equity release Interest - help needed

chrissy777

It gets worse! ( this is the woolwich by the way, or nationwide as it now is?) ... we have now been informed we are not entitled to my Mothers savings ( around 10k) even know it was all left to us in the will, Bankers have said they are not letting have it as there is a debt to be paid they will not release it until it is cleared, we have the house on the market and hope to sell asap , can they do this??

[Deleted User]

The money is not being used against the debt, so it will still be yours eventually.
You need to expedite the sale of the house ASAP and take some proper legal advice rather than rely on an internet forum...

antrobus

chrissy777 wrote: »

It gets worse! ( this is the woolwich by the way, or nationwide as it now is?) ...

Barclays.

chrissy777 wrote: »

... we have now been informed we are not entitled to my Mothers savings ( around 10k) even know it was all left to us in the will, Bankers have said they are not letting have it as there is a debt to be paid they will not release it until it is cleared, we have the house on the market and hope to sell asap , can they do this??

Yes. They have the right of set-off.

chrissy777

great I didnt think a will could be changed so to speak?

chrissy777

Moneyineptitude wrote: »

The money is not being used against the debt, so it will still be yours eventually.
You need to expedite the sale of the house ASAP and take some proper legal advice rather than rely on an internet forum...

we have a solicitor, but im just looking around for other advise, we were originally told the interest would be froze

[Deleted User]

antrobus wrote: »

They have the right of set-off.

Only if the house is unsold and the debt not recovered through that.

antrobus

Moneyineptitude wrote: »

Only if the house is unsold and the debt not recovered through that.

Well, obviously! But as things stand the OP Bank has stated that "as there is a debt to be paid they will not release it until it is cleared", and thus they have the right of set-off.

chrissy777 wrote: »

... we were originally told the interest would be froze

By whom?

antrobus

chrissy777 wrote: »

great I didnt think a will could be changed so to speak?

A will can't over-ride third party rights.

chrissy777

my solicitor originally said they freeze the interest upon death, as long as house is seen to being put on the market, but was then told no they wouldnt freeze it, which is currently around 600 a month >.<

magpiecottage

antrobus wrote: »

Yes. They have the right of set-off.

I suspect that it might fall foul of a no negative equity guarantee.