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Equity release question
louspoon
Posts: 21 Forumite
Sorry if this has been asked before, but:
My parents took out equity release about 10 years ago and rolled it from a few homes they owned to the one they are in now. My dad passed in November 2022 and my mum is the sole person in the home. The value owed inc interest £95k is which is close to her house value which is about £150k. Do you know if the mortgage company can repossess if the interest exceeds the property value?
My parents took out equity release about 10 years ago and rolled it from a few homes they owned to the one they are in now. My dad passed in November 2022 and my mum is the sole person in the home. The value owed inc interest £95k is which is close to her house value which is about £150k. Do you know if the mortgage company can repossess if the interest exceeds the property value?
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Comments
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Do you know if the mortgage company can repossess if the interest exceeds the property value?On what grounds do you think they can repossess?
(i.e. no they cant)
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
if the interest exceeds the property value
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louspoon said:if the interest exceeds the property valueNo, in fact with a plan taken out as recently as 10 years ago the odds are it has a guarantee that the amount owed at the point where repayment is triggered (entry into long-term care or demise of the last life) will never exceed the value (negative equity guarantee), so the estate does not have any risk of owing more than the property is worth, and it certainly can't trigger repossession.1
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