equity release shortfalls

hilaryannlawrence

my mother died in December 2019 aged 98 she took out an equity release approximately 30 yrs prior to her death of £35,000 the property which is sheltered housing. At the time of her death was valued at £170,000 the equity release amount had grown to £80,000 in the  past 30 months the property has been reduced and reduced to £100,000 but still with no offers, the equity release have said we cant sell below £90,000. My brother and myself have spent  approximately £15,000  in rates, servicing costs, bill ect. we are now running out of funds ourselves and can see no way out of this mess can anyone offer advise please

Sea_Shell

Did your mum have any other assets, cash etc.

It sounds like you could now be effectively dealing with an insolvent estate.

Who paid for the funeral?

Linton

hilaryannlawrence said:

my mother died in December 2019 aged 98 she took out an equity release approximately 30 yrs prior to her death of £35,000 the property which is sheltered housing. At the time of her death was valued at £170,000 the equity release amount had grown to £80,000 in the  past 30 months the property has been reduced and reduced to £100,000 but still with no offers, the equity release have said we cant sell below £90,000. My brother and myself have spent  approximately £15,000  in rates, servicing costs, bill ect. we are now running out of funds ourselves and can see no way out of this mess can anyone offer advise please

As SeaShell says it looks like your mothers estate could be insolvent.  You should not be paying for any bills from your own money if you are not going to be able to claim from the estate. Can you suggest to the ER company that you stepdown as the executors and pass the responsibility over to them to administer?  The alternative is that the bills dont get paid with possible risk to the house.

Keep_pedalling

This type of property is notoriously difficult to sell (if you are thinking of downsizing to this sort of property rent don’t buy) because of the limited number of available buyers. Can you simply hand over the property to the ER company? 

Onlooker2

All borrowers should be aware that compounding interest is charged against this product. Request an estimate for the next 10,15,20,25 years as to what the outcome would be or anyone borrowing monies this  way before getting involved.depending upon the rate charged the loan will double at some point.

Linton

hilaryannlawrence said:

my mother died in December 2019 aged 98 she took out an equity release approximately 30 yrs prior to her death of £35,000 the property which is sheltered housing. At the time of her death was valued at £170,000 the equity release amount had grown to £80,000 in the  past 30 months the property has been reduced and reduced to £100,000 but still with no offers, the equity release have said we cant sell below £90,000. My brother and myself have spent  approximately £15,000  in rates, servicing costs, bill ect. we are now running out of funds ourselves and can see no way out of this mess can anyone offer advise please

You had and have no obligation to pay anything out of your own money. I suggest you stop immediately and let events take their course.  The council, management company and ER company can sort it out amongst themselves.

Sea_Shell

The OP hasn't been back since they posted.
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Hopefully, they have at least read the replies, even if they've not logged in.