Shared appreciations mortgage

monnie38

Last week I lost my grandfather, he left behind my nan, she isn't well and is very frail and has early onset dementia, I am currently taking lasting power of attorney to help her.
The house that they lived in, I have found has a SAM.
In the 90's he took a loan against the house for £27,500 which was 25% of the value of the house.
When the house is sold we have to pay back to Barclays 75% of the market value Plus the £27500 loan

Now my nan doesn't understand this, she remembers it happening but doesn't know what any of it means,
I need to sell the house as its too big for her to manage and she needs a retirement flat in a warden control building, however the payback to Barclays doesn't leave enough money to do so.
Surely this can't be right ?

If she stays in the house, I have been left it in her will, but I'm unsure how that works aswell?

Please can someone help me

Newbie_loan

I'm unsure on this. Wish I could help.

I would seek some free legal advice.

Good luck

cte1111

Here's some information from Barclays, that may well apply to your Nan.

http://www.barclays.co.uk/Helpsupport/SharedAppreciationMortgages/P1242557964732

It says "The Shared Appreciation Mortgage Scheme aims to help customers who are in a situation of substantial hardship, and as a result need either to move to a more suitable property or adapt their existing home to make it suitable to their needs." It looks like they will possibly arrange an interest free loan that will need to be paid off eventually, presumably when you inherit ultimately.

Saga says the financial ombudsman "generally failed to uphold cases brought by SAMs victims unless they were manifestly mis-sold by an independent adviser", so it looks like this may be the best option for your Nan to ensure she can live somewhere that meets her needs.
http://www.saga.co.uk/saga-magazine/2014/july/the-dangers-of-shared-appreciation-mortgages.aspx