Lifetime mortgage

Sammy67

My dad took a lifetime mortgage a long time ago. He has since passed away. The house was left to me and my sister in trust with my mum living there. The mortgage looks set to be as much as the value of the house by the time my mum dies and I am sure this possibility was not explained to my dad otherwise why leave it to us in trust rather than just to my mum. Do I have any recourse? Should we try to pay it off before my mum passes away? Any help or advice would be appreciated 

DE_612183

It depends on the product - some LTMs have an inheritance provision.

It may be better to find out from the provider what the product looks like and what the options are.

dunstonh

 The mortgage looks set to be as much as the value of the house by the time my mum dies 

That would be highly unusual with lifetime mortgages from the last 20 years.   It could be possible with some 1980s to early 90s ones.

I am sure this possibility was not explained to my dad otherwise why leave it to us in trust rather than just to my mum. Do I have any recourse?

Evidence?
you have used a cause/causation argument but that won't wash.

Most equity releases for the last 20 years have involved a solicitor giving the risk warnings and confirming understanding.    Provider risk warnings are also prominent.   If he used an adviser, they too need to give the risk warnings.  If he didn't use an adviser, then his consumer protection is reduced.

So, how long ago was this lifetime mortgage arranged?

DullGreyGuy

Sammy67 said:
The mortgage looks set to be as much as the value of the house by the time my mum dies and I am sure this possibility was not explained to my dad otherwise why leave it to us in trust rather than just to my mum. 

Whats your evidence?

Your logic certainly doesn't stand up... how much will be left will depend how many years after taking the mortgage the relevant people die. It very easily can be that they lived vastly longer than they had anticipated at the time and hence the debt has grown to a larger value than they realistically thought it would. 

MWT

Sammy67 said:

The mortgage looks set to be as much as the value of the house by the time my mum dies and I am sure this possibility was not explained to my dad otherwise why leave it to us in trust rather than just to my mum. 

 The trust approach was sometimes taken in what was often a misguided attempt to shield part of the value of the property from care fees, so I wouldn't infer anything regarding lack of understanding of the remaining value from that action.

As others have said, it would be unusual for the entire value to be taken by the rolled up balance of the mortgage, but depending on exactly when it was taken out, it is possible given long life and a high interest rate at the time it commenced.