Equity release question 15 March at 3:15PM in Mortgages & endowments 3 replies 102 views

louspoon

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?

dunstonh

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)

louspoon

if the interest exceeds the property value

MWT

louspoon said:

if the interest exceeds the property value

No, 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.