Equity release scam??

Bitter1234

Back in the 80s/90s my grandparents released £27,500.00 from their mortgage. This is now due to be repaid as both have now passed away, however having received the calculation from Barclays I’m very bitter about the amount I need to repay and feel like this should come under the payday loan capping by the fca.
Based on their calculation the original loan amount of £27,500.00 I need to repay £260,000.00 based on the current house value. Surely this is Ridiculously unfair and shouldn’t be allowed?

3 x loan to value ratio x valuation difference = shared appreciation amount + admin fee + original loan value + valuation fee = total sum being repaid.


Based on a hypothetical valuation of £420,000.00 the sum is

3 x 25% x £310,000.00 = £232,500.00 + £150.00 + £27,500.00 = £260,150.00 + valuation fee


Please please can someone help me and advise if I have a case to dispute this and where I go from here ?

Sea_Shell

Surely it's their estate that has to pay it, not you personally.

Bitter1234

They are deceased and I have inherited the estate

Edi81

So you inherit the net estate.

Your grandparents made the choice to take out the shared appreciation mortgage. They weren’t to know that house prices would increase by the amount they did.

Be grateful for the net inheritance. Many people get nothing from their parents/grandparents.

Bitter1234

I’m not being ungrateful I just think there should be a cap in place as this 1000% ireturn seems unfair, there must be hundreds of elderly people out there in the same boat

Sea_Shell

Unfair to who? Elderly people aren't the ones missing out .. their beneficiaries are.

davidmcn

Bitter1234 wrote: »

I’m not being ungrateful

Just bitter?

dimbo61

Well speak to the FCA and contact your MP and local councillor.
Can you afford to take out a £260,000 mortgage to pay back Barclay's ?
What is the current value ?
How long have you lived in the property ?
What condition is the property in ?
Complain to Barclay's and challenge the figures they have come up with.
Ask for ££££££ for the maintenance of the property over the last 35/40 years !
Is it worth less than the outstanding mortgage ?
You may have to sell and use £160,000 you should receive from the sale to buy another property.

Bitter1234

Elderly people who need to downsize and maybe move to bungalows and flats because of health reasons are unable too , because the amount they have to repay to Barclays doesn’t leave them with enough money to buy their new property

Sea_Shell

Just think...if house prices hadn't risen at all Barclays would have been owed 3 * 25% of nothing, plus original loan and fees.

antrobus

dimbo61 wrote: »

Well speak to the FCA and contact your MP and local councillor.
Can you afford to take out a £260,000 mortgage to pay back Barclay's ?
What is the current value ?
How long have you lived in the property ?
What condition is the property in ?
Complain to Barclay's and challenge the figures they have come up with.
Ask for ££££££ for the maintenance of the property over the last 35/40 years !
Is it worth less than the outstanding mortgage ?
You may have to sell and use £160,000 you should receive from the sale to buy another property.

The FCA don't deal with consumer complaints. MPs are well aware of SAMs; there's a House of Commons Standard Note on the subject.

Other than that, try reading the first post.