Elderly parents' partial equity release

Mrs_Money

Quite some time ago my elderly parents did a partial equity release on their home. As is often the case, it was not a good deal, but that's another story!
They were advised by the solicitor at the time to do their wills, but they didn't. They are now in their 90s and I've been trying to persuade them to do wills for about the last 15 years plus. They just prevaricate and don't bother to do it. They are both of sound mind, but not at all mobile and I've offered to arrange a home visit from a solicitor but to no avail.
But another issue apart from that, is that even if I do manage to get them to do wills, and they think that they would leave me the 30% value still retained in their house, I'm wondering if I would then encounter problems from the equity company about updating the property? It is a 70s estate house with the original kitchen and bathroom! Still nicely decorated but with worn carpets.
The equity company inspects the house every year and says it's okay in writing.
Where do we stand in all this?

margaretclare

Mrs_Money wrote: »

Quite some time ago my elderly parents did a partial equity release on their home. As is often the case, it was not a good deal, but that's another story!
They were advised by the solicitor at the time to do their wills, but they didn't. They are now in their 90s and I've been trying to persuade them to do wills for about the last 15 years plus. They just prevaricate and don't bother to do it. They are both of sound mind, but not at all mobile and I've offered to arrange a home visit from a solicitor but to no avail.
But another issue apart from that, is that even if I do manage to get them to do wills, and they think that they would leave me the 30% value still retained in their house, I'm wondering if I would then encounter problems from the equity company about updating the property? It is a 70s estate house with the original kitchen and bathroom! Still nicely decorated but with worn carpets.
The equity company inspects the house every year and says it's okay in writing.
Where do we stand in all this?

We did equity release in 2003 just to pay off an existing £45K mortgage. Not having to pay a monthly mortgage amount has been a real godsend.

I'm surprised about the annual inspection. No one has inspected ours! Sounds a bit like being in an army quarter.

We are just about to have a complete upgrade of our bathroom to modern accessibility/mobility standards. Everything we do adds value and the recently-redeveloped airport 5 minutes away means there will be no difficulty in selling eventually.

However, from your point of view, the extreme short-sightedness of your parents in not making their wills is of concern. We've recently been helping a friend whose husband died very suddenly and intestate. We saw at first hand the unnecessary complications and difficulties not having a will brings. I am amazed how short-sighted and blinkered some people are.

Mrs_Money

Yes Margaretclare, I think, as my parents are in effect, "joint owners" of the property with the equity company, that if there is no will, on their death the whole property could revert to the equity company. My parents were keen to retain some equity in their property to pass on to me and my siblings, making it doubly frustrating that they will not get around to making wills!
They only have to pick up the phone - I've given them the number of the solicitor who did my and my late husband's mirror wills - (cost £240 for both only a couple of years ago) but they still take no action. With the recent loss of my DH, I think it was Money very well spent.

elona

Mrs money

You could use the principle that "inertia sellers" do. Make the appointment for them and say you will be there to help.

If they can't make the decision to make the appointment then they won't make the decision to cancel.

Mrs_Money

elona wrote: »

Mrs money

You could use the principle that "inertia sellers" do. Make the appointment for them and say you will be there to help.

If they can't make the decision to make the appointment then they won't make the decision to cancel.

You're a mind reader Elona, I've just been out for a brisk walk and come to exactly the same conclusion!

margaretclare

Mrs_Money wrote: »

Yes Margaretclare, I think, as my parents are in effect, "joint owners" of the property with the equity company, that if there is no will, on their death the whole property could revert to the equity company. My parents were keen to retain some equity in their property to pass on to me and my siblings, making it doubly frustrating that they will not get around to making wills!
They only have to pick up the phone - I've given them the number of the solicitor who did my and my late husband's mirror wills - (cost £240 for both only a couple of years ago) but they still take no action. With the recent loss of my DH, I think it was Money very well spent.

I can't understand why anyone doesn't make a will. Anyone at all. It's one of those things that you do and then forget about - until it's needed.

How the existing equity works will depend entirely on the scheme under which it was set up, the interest rate, what amount of equity is left. They should get an annual statement from the lender detailing all this.

Our scheme was pegged to the Bank Rate and that has worked in our favour, staying so low for so long. Having the mortgage money every month has meant we're able to do updates and improvements which maintains the value.

I would not like to live with a 70s bathroom!

PS: Worn carpets are dangerous for older people.

teddysmum

margaretclare wrote: »

I would not like to live with a 70s bathroom!

Why ?


I understand the dislike for dark coloured suites that were popular for a while, but our house, built in 1971, together with over 300 on the estate, had white suites , very like but better quality than white suites available nowadays. The baths were metal and not easily damaged acrylic.

margaretclare

teddysmum wrote: »

Why ?


I understand the dislike for dark coloured suites that were popular for a while, but our house, built in 1971, together with over 300 on the estate, had white suites , very like but better quality than white suites available nowadays. The baths were metal and not easily damaged acrylic.

We got rid of the 70s bathroom suite. Horrible colour - sage green, yucky. It had been an upgrade since this was built in 1934. Main problem was shower over bath, water running down wall making wall damp, and dangerous climbing in and out to shower. We haven't had a bath for a few years now.

teddysmum

margaretclare wrote: »

We got rid of the 70s bathroom suite. Horrible colour - sage green, yucky. It had been an upgrade since this was built in 1934. Main problem was shower over bath, water running down wall making wall damp, and dangerous climbing in and out to shower. We haven't had a bath for a few years now.

We have a bath and no shower.I prefer a bath, as I hated showers from the time we were forcibly fed through them , after school PE lessons (Girls' grammar school so you did what you were told) .

elona

Are you in your seventies or more finding it difficult or dangerous trying to get in or out of the bath?

We changed our en suite to a huge walk in shower a few years ago
and I thank heavens we did as it was a godsend when DH got ill.

margaretclare

[QUOTE=elona;69857794]Are you in your seventies or more finding it difficult or dangerous trying to get in or out of the bath?[/QUOTE]

Well, we were. We got rid of the bath etc about 15 years ago.

We changed our en suite to a huge walk in shower a few years ago and I thank heavens we did as it was a godsend when DH got ill.

We've had a low step-in shower since 2009 but now, we're having the whole bathroom - not that it's very big! - completely remodelled. A firm called Mobility Plus, their Richmond range, gives you an idea of what it will be like. It's scheduled for the first week in April. Level access i.e. walk in shower. There is always the threat of DH having leg amputation, always at the back of our minds.