More 2 Life Equity Release Lifetime Mortgage

rachelleigh73

Hi all

As previously posted we are unable to secure a conventional mortgage. Several IFA's have suggested the equity release route for us - and More 2 Life have emerged as a possible lender for us.

Does anyone have any experience of them?

Many thanks

rachelleigh73

*Bump* please - we need all the help we can get atm

dunstonh

What does your IFA say about them?

Have you asked the IFA to show you their research if you have concerns? (that will show their filtering process to lead to their recommendation).

Missmarch17

I am not a financial advisor but the daughter of someone who took out a lifetime mortgage equity release and I would strongly advise against them.
My dad borrowed 15k and has since passed away, with interest there is now a little over 16k owing.
However now the company (aviva) have total control of that property, I am unable to sell it, remortgage or take out a secured loan on it to pay the money back. So although i should own about 90% of the property, the only people with any power over it are aviva, who 'own' less than 10%.

AnotherJoe

Why can't you pay the £16k off ?

ViolaLass

Missmarch17 wrote: »

I am not a financial advisor but the daughter of someone who took out a lifetime mortgage equity release and I would strongly advise against them.
My dad borrowed 15k and has since passed away, with interest there is now a little over 16k owing.
However now the company (aviva) have total control of that property, I am unable to sell it, remortgage or take out a secured loan on it to pay the money back. So although i should own about 90% of the property, the only people with any power over it are aviva, who 'own' less than 10%.

So they're actively blocking you from repaying? Why?

dunstonh

However now the company (aviva) have total control of that property, I am unable to sell it, remortgage or take out a secured loan on it to pay the money back. So although i should own about 90% of the property, the only people with any power over it are aviva, who 'own' less than 10%.

You can sell it. That is never a problem with equity release.
You cant take a secured loan on it as there is already one.

I am not a financial advisor but the daughter of someone who took out a lifetime mortgage equity release and I would strongly advise against them.

There is no problem with them. Some of the 80s versions can be poor by modern standards but modern equity release is fine and Aviva are a major product and none of what you so is consistent with modern equity release.

So, either your understanding is not quite correct or there is an issue.

Missmarch17

Because I'm not lucky enough to have 16k laying around in my bank account.

Missmarch17

Well if I am misunderstanding, so are the probate and conveyancing solicitors and estate agents.

I cannot do anything with the property e.g. lend on it to repay the money, or sell it to repay the money.

Aviva will not allow me to have my name on the deeds until they are paid, but I can't pay if they refuse my name on the deeds, its a vicious circle.

Aviva can sell it however, with or without my permission 12 months after the date on which my dad died.

I have a mortgage offer but it can't proceed any further as the conveyancing can't complete without approval from aviva.

dunstonh

Aviva will not allow me to have my name on the deeds until they are paid, but I can't pay if they refuse my name on the deeds, its a vicious circle.

And here we have it. You are not the owner. The estate is the owner.

As you are not the owner, you cannot sell the property. You cannot borrow against the property.

Technically, you need to buy the property out of the estate. If you are the sole beneficiary of the estate then it should just be a case of arranging a mortgage to buy the property with Aviva being paid upon completion.

Missmarch17

I am the sole beneficiary, probate has been granted, mortgage offer has been sent..........solicitor cannot move forward without consent from aviva, aviva will not give the consent. The mortgage offer is an amount to repay aviva who were named on the application and a bit to redecorate the house and pay off a car loan I have.