How does someone get equity release with a property trust?

cloudyz

Cut a long story short. If someone has done an equity release and life time mortgage, how was this ever done if a trust was already in place? Does the mortgage firm not have to see a will (if applicable) before hand?

kingstreet

IMHO you will struggle to secure any loan with a property held in trust. Some lenders even have an issue lending where a property being held in a trust is being purchased from a trust.

Keep_pedalling

You cat your story far too short, when was ER taken out? When did the testator responsible for the trust die.? The trust would only come into effect on the death of the testator so if ER was taken out before then, there would be nothing stopping ER going ahead, although it would have been sensible to review their wills at that point.

dunstonh

cloudyz said:

Cut a long story short. If someone has done an equity release and life time mortgage, how was this ever done if a trust was already in place? 

Was the trust activated at the time of borrowing?  In most cases the trust only gets activated on the first death.
If it was active, did the homeowner declare it and Land registry changed to reflect the trust as the owners?

Does the mortgage firm not have to see a will (if applicable) before hand?

If it was in trust, then a Will doesn't matter, as Wills do not apply to a trust.  A trust doesn't die.
If the trust was not activated then the Will still doesn't matter as the property ownership is still in the name of the individual(s) and borrowing is not impacted on whether there is a Will or not or whether a trust will become active at a later date.

MWT

cloudyz said:

Cut a long story short. If someone has done an equity release and life time mortgage, how was this ever done if a trust was already in place? Does the mortgage firm not have to see a will (if applicable) before hand?

dunstonh covered it very well, if the trust was already active and the ownership properly recorded the equity release would not have proceeded, merely having the intention to create a trust recorded in a will is irrelevant.

People can put pretty much anything they want in a will, but that doesn't mean it is going to be possible to put it into effect upon their demise.

If you want to give us the whole story there may be more that can be said of course...