Six months after sale of house, Equity Release company want more

djl0001

I am executor to my late fathers estate. His house was sold and I was issued with a "final sale statement" from the property lawyer handling the sale. Subsequently, after a 6 month period, I have received an email (with a word document letter attached) stating that the equity release company (Aviva) miscalculated the amount due to them and I am now being told I must pay back £27,000 from the proceeds of the sale. I have received no correspondence from Aviva to explain why this occurred and no explanation from the lawyer involved. I am guessing that I am still liable as executor but wondered where I am standing from a legal perspective. Any advice gratefully received.

user1977

First step surely is to work out whether their latest calculation is correct?

Thrugelmir

Mistakes happen. Aviva will pursue their claim if it's correct. 

carefullycautious

Also make sure this is from Aviva and not a scam email!!!

sevenhills

djl0001 said:

I am guessing that I am still liable as executor but wondered where I am standing from a legal perspective. Any advice gratefully received.

Does the estate still have funds or has the estate been split up and sent to the beneficiaries?

It was their mistake, not yours, if it's genuine.

Exodi

sevenhills said:

Does the estate still have funds or has the estate been split up and sent to the beneficiaries?

It was their mistake, not yours, if it's genuine.

To be frank, I think it's of little relevance if the proceeds have been split up, or who the finger gets pointed at.

If their re-calculation is correct, they'll pursue this through the estate or beneficiaries, it makes little difference, this is no small sum.

The first port of call should be checking the original paperwork and ascertaining whether you agree with their revised calculation.

GDB2222

I am not convinced you should cave in too quickly on this. Take a look at this link, for example:

https://citywire.co.uk/funds-insider/news/wrong-redemption-figures-from-lenders-stitch-up-solicitors-says-zurich/a286980

GDB2222

And this one

https://www.financial-ombudsman.org.uk/files/2820/33.pdf

djl0001

Thank you everyone for your comments and information. Just for background info - my parents took equity release on a total borrowed amount of £46,000 in 2003. The house sold for £240,000. The original loan and interest taken back by Aviva amounted to £208,000. I have never of course begrudged my parents the enjoyment they received from this cash in their retirement years. Having now looked at most recent statements from Aviva it does appear that the revised claw back is roughly correct. I am just angry that this error occurred at all (after distributing share of proceeds to my 4 siblings) and the offhand way I was made aware of this. I wish I was rich enough to treat 27k as someone else's regrettable error...

TBagpuss

I think it is absolutely worth making a formal complaint - it's a pretty major error for them to have made and it sounds as though you, as executor, have altered you / the estate's position - you have distributed the funds.

You can I think, request that your siblings return their shares so the loss doesn't fall solely on you if they do depmand the money but it is certainly worth making a formal complaint first. 

Chandler85

If Aviva issued paperwork saying the loan was now redeemed and finished.  Then after, they have changed their mind and decided after the letter was issued, then definitely go to the financial ombudsman.