Property owned as an executor - Equity Release??

sleepymans

Further to my thread about the difficulty of getting a mortgage due to the new affordability criteria, I had a further thought....


Is it possible to get an equity release type loan on a property owned as an executor, so that it could be repaid in full once the property is sold?


Would a whole of market mortgage broker be able to advise on such an equity release arrangement?

getmore4less

Depends what you want the money for.( I can't be bother to go look for other info)

Certain activities by an executor are very naughty and can fall foul of a number of laws.

sleepymans

Lol....nothing dodgy....he just wants to raise £60k to put towards the cost of purchasing the next home!

PasturesNew

As an executor, selling the house, is he also a beneficiary? If the will said "it must be sold, then the cash given to XYZ" and if he is XYZ ... then it might be possible. But if the property/proceeds from sale won't wholly be his, then you're into the territory of "No chance" as there are claims on the property/cash and it could possibly even be fraudulent, or misuse of powers, to do so

(Making this up, but that's how I'd see it).

sleepymans

PasturesNew wrote: »

As an executor, selling the house, is he also a beneficiary? If the will said "it must be sold, then the cash given to XYZ" and if he is XYZ ... then it might be possible. But if the property/proceeds from sale won't wholly be his, then you're into the territory of "No chance" as there are claims on the property/cash and it could possibly even be fraudulent, or misuse of powers, to do so

(Making this up, but that's how I'd see it).[/QUOTE
he is joint executor and the proceeds are willed to be shared 50% each between the 2 executors. He wishes to raise £60k from the value of the probate house which is valued at £450k in total (to be shared 50/50)

Thrugelmir

sleepymans wrote: »

Is it possible to get an equity release type loan on a property owned as an executor, so that it could be repaid in full once the property is sold?

The property belongs to the estate not the executor.

kingstreet

Tell him to stop, now.

He is effectively two legal entities and they may not share the same objectives.

As an Executor, he is required to discharge his obligations with the best interests of the Estate and beneficiaries as a whole, at heart.

As a beneficiary, his interests may not be the same as those of an Executor.

I suggest he seeks professional advice. I do not see how committing the Estate to a credit commitment could be anything other than detrimental to the Estate.

http://www.adviceguide.org.uk/wales/relationships_w/relationships_death_and_wills_e/dealing_with_the_financial_affairs_of_someone_who_has_died.htm