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Equity release firm remaining proprietor
Emsierose
Posts: 9 Forumite
Hi all
I wondered if anyone had any similar situations of this.
My friends father sadly passed away last week (his mother having passed in 2013) and I am helping him handle the affairs.
His dad was expected to be the remaining owner of the house, but they were unsure whether their mother was still on the records and whether it was held joint tenants/tenants in common, etc. but in the process of obtaining copy of the deeds to assess such, we found that an equity release company were involved and held 48% of the property.
It has been a big shock to the family as they what not even aware of any such company being involved, but I have never known an equity release company to actually be a proprietor as opposed to just having a charge against the property.
What makes it all worse is that the company loaned/purchased their share for just under £18,000 back in 2003 when the property was stated as being valued at £200,000 - for a 48% share!
I dread to think what made them do such - they must have been in a really terrible position.
Having then spoken with said company, they stated the family have 48 hours to clear the property and they have been ordered to hand the keys of the property over to them. They have since calmed down a little and backed down from the initial 48 hours to allow them a week, but they have also stated they have complete control over the sale, down to who it is marketed with, what it is sold for, and who handles the conveyancing, etc.
The family are at a loss and there doesn't seem to be anything that can be done to object this. But I wondered if anyone had any experience of this kind.
Can they access the property after the week period and clear the personal items in the house? I can't see how they would have this authority!
As I have reached the end of this I wonder if this should be posted elsewhere! Please advise where necessary!
All help much appreciated.
Many thanks!
I wondered if anyone had any similar situations of this.
My friends father sadly passed away last week (his mother having passed in 2013) and I am helping him handle the affairs.
His dad was expected to be the remaining owner of the house, but they were unsure whether their mother was still on the records and whether it was held joint tenants/tenants in common, etc. but in the process of obtaining copy of the deeds to assess such, we found that an equity release company were involved and held 48% of the property.
It has been a big shock to the family as they what not even aware of any such company being involved, but I have never known an equity release company to actually be a proprietor as opposed to just having a charge against the property.
What makes it all worse is that the company loaned/purchased their share for just under £18,000 back in 2003 when the property was stated as being valued at £200,000 - for a 48% share!
I dread to think what made them do such - they must have been in a really terrible position.
Having then spoken with said company, they stated the family have 48 hours to clear the property and they have been ordered to hand the keys of the property over to them. They have since calmed down a little and backed down from the initial 48 hours to allow them a week, but they have also stated they have complete control over the sale, down to who it is marketed with, what it is sold for, and who handles the conveyancing, etc.
The family are at a loss and there doesn't seem to be anything that can be done to object this. But I wondered if anyone had any experience of this kind.
Can they access the property after the week period and clear the personal items in the house? I can't see how they would have this authority!
As I have reached the end of this I wonder if this should be posted elsewhere! Please advise where necessary!
All help much appreciated.
Many thanks!
0
Comments
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The executors should really be seeking legal advice - in particular they'll need to see whatever agreement was entered into with the equity release company about marketing etc rather than just taking their word for it.0
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It's a home reversion scheme rather than a loan ie the equity release is in the form of a part-sale (with the original owners retaining a life interest or until such time as they needed to go into care - which obviously didn't happen to your friend's parents).
What was the name of the company involved out of interest?0 -
But surely if the company owns 48% of the house then the beneficiaries own 52% and they should be able to market the house etc and when sold give them their 48% of the proceeds.0
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Presumably there's an agreement (which the OP's friend hasn't yet seen) about how a sale is to be dealt with. In the absence of one, the joint owners either reach a consensus about how to sell it or go to court.But surely if the company owns 48% of the house then the beneficiaries own 52% and they should be able to market the house etc and when sold give them their 48% of the proceeds.0 -
Keep_pedalling wrote: »The 52% currently belongs to the estate not the beneficiaries.
Entitled to of the net proceeds not the property.0 -
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Thank you all for your responses.
I had thought similar with regards to them having the 52%.
They are currently trying to locate the original agreement in the house which will hopefully help.
It wouldn't in theory take them a long time to sort through the items in the house, it's just where some family members are not local and they are still dealing with the shock; they weren't really planning on clearing the house quite so quickly.
The company have been taken over since but it is now being dealt with by Bridgewater Equity Release.0 -
The quicker the property is emptied. The sooner the sale can proceed. This is to all parties benefit.0
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