Much help requierd

badmortgage

Have inherited a lifetime mortgage from my late mother bless her totaling £163,507.76 so far am in the middle of selling her house to pay this massive bill didn't know about the ins and outs of mortgages and was also my mums carer for four years have accrued £12,235.76 in extra interest am struggling on universal credit feel lost as the company AVIVA effectively takes over half my money any ideas any one?? Have never had a lifetime mortgage or loans from any bank so selling house to repay this huge debt also have terms and conditions am going to take those to my solicitor.

muhandis

Sorry for your loss. Based on Aviva's webpage on lifetime mortgages -

- the mortgage is designed to be paid in full (capital + accrued interest so approx 176k) upon the death of the borrower
- the estate is given 12 months to do this after which the mortgage is deemed in default
- interest continues to accrue in the 12 months

In most cases, the property is sold and receipts are used to pay off the mortgage with the rest going to the estate.

badmortgage wrote: »

Have inherited a lifetime mortgage from my late mother bless her totaling £163,507.76 so far am in the middle of selling her house to pay this massive bill didn't know about the ins and outs of mortgages and was also my mums carer for four years have accrued £12,235.76 in extra interest am struggling on universal credit feel lost as the company AVIVA effectively takes over half my money any ideas any one?? Have never had a lifetime mortgage or loans from any bank so selling house to repay this huge debt also have terms and conditions am going to take those to my solicitor.

-taff

Aviva may be talking half your money, but it's not your money until the estate has been finalised. Your mother agreed to this mortgage, so she is the one who made this financial decision and unless she wasn't of sound mind when she did, Aviva have no fault here.
My condolences.

System

You sell the house and clear the debts outstanding.. I'm not sure I see the issue here?