Prudential Lifetime Mortgage Nightmare...

sunflowersandsnowdrops

Hi everyone. I really need some advice. My Mum died in February, my Father died three years before. I am an only child and the house has been left to me. They had a Prudential lifetime mortgage on their home which they used to improve it. I am now in the position of dealing with people with no compassion and the only talk I am hearing is of interest... The house went on the market on the 29th February as I know how these places work. I have reduced it 5 times to no avail. It is in a little country town and the COVID pandemic has obviously slowed things down and not helped my situation at all. They are being really unhelpful. Offering to halt interest from March until June (100 days). The 9 months they gave me to sell ends on the 9th November. I know it isn't really relevant but I am very unwell, I've had to stop teaching (my beloved job for 15 years) due to having a major depressive episode after losing my Mum. At times I have wanted to die and this situation utterly compounds how I feel. What, if anything, can I do? Or do I not have a leg to stand on. And talking semantics, the term 'lifetime' should surely denote when the homeowner is alive and not deceased? Why don't they stop adding interest after the owner has passed away????? Any advice is welcome. x

Raffi2020

So sorry to hear of your troubles - this has been such a tough year and it sounds like you've had a lot extra to deal with.
I don't have a lot of advice to offer, except to ask have you contacted people like Citizens Advice? They may be able to offer some advice or input, or at very least see it from your point of view and be on your side - it's a lonely feeling when it's you vs a lender! It can feel very heartless when they show such little compassion for your predicament. 

It might also be worth trying to have an informal chat with a financial adviser perhaps? Again, I'm not sure what practical steps could be taken to alleviate your problems, but I'm sure you could find someone to at least hear your situation and offer you some advice or options on moving forward. There are people out there who will be on your side and try and come at this from your point of view - the mortgage company will only see it from theirs. 

Have you spoken to you estate agent about why the property isn't selling and how you might be able to improve the chances of a sale? Covid has caused a lot of problems this year and the housing market seems very volatile, but there are people out there looking to buy (though I guess your location etc. all factors in to this). Have you had lots of views or little interest at all? 

I know when you're feeling down how lonely it can be, and feeling like it's you against the world makes everything so exhausting. It would be worth maybe just having a chat to people who can be "on your side" - even if they can't directly help or sort the problems out, they may be able to offer some support, advice or put you in contact with others who can. Just feeling like you have some support or someone has appreciated what a difficult position your in might give you that little bit of energy and comfort you need to push on and sort this out.

And just remember, as cliche as it sounds, it will pass and you will resolve the situation. Houses and house buying/selling can be such a stressful and burdensome experience at the best of times - reading through these forums will demonstrate that! Sometimes it can warp your thoughts and make you feel trapped - like there's nothing else outside of the problem. But there are people who can help and, when the situation begins to resolve, you will be able to start seeing it in the context of a larger life, find some time to properly grieve and process what a difficult year you've had, and move forward on to something brighter.  

dunstonh

nd talking semantics, the term 'lifetime' should surely denote when the homeowner is alive and not deceased? Why don't they stop adding interest after the owner has passed away?

I'm sorry you are having difficulties but realistically you are expecting far too much from them.

Whilst the homeowner has passed away, the asset and liabilities are now part of the estate and continue for the lifetime of the estate.   

If it was a conventional mortgage, then interest would still be charged on that.  So, the fact it is a lifetime mortgage makes no difference.  And 100 days of interest-free was a generous offer from them.        Normally they like you to sell it as soon as possible. i.e. completed within 12 months.    If it is taking longer they will usually check it is on the market and at a realistic price.   Often they will check within the 12 month period and will offer suggestions to speed up the sale if they feel it is necessary. 

What, if anything, can I do? Or do I not have a leg to stand on.

Firstly, stop worrying.  At the end of the day, it is just administration and paperwork and minor hassles. Nothing that should cause anything beyond the occasional frustration.  Secondly, speak to the Pru and let them know your difficulties.   It probably wont lead to an interest freeze but it will at least keep them informed of the status and you can ask them for guidance in respect of how long it is taking.   Covid is an area that all financial services companies are required to keep in mind in respect of delays.

Also, speak to the estate agent.  My mortgage advisers and estate agent contacts are telling me that they are really busy at the moment and the financial press also suggests house sales are motoring on in most areas.   So, if you are not getting people interested in the property then this is an area that the estate agent should help you on.

 I have reduced it 5 times to no avail.

The people we bought our house from reduced it over 8 times before they got someone to bite.  If no-one is interested after all this time, then maybe it still isn't at the right level yet.  Again, this is a chat needed with the estate agent.

As I said, there is nothing in what you have described that you should be worrying about.  It is just a process that can be frustrating and difficult at times but don't let it get to you.  Do you have anyone you can call upon for support?