Equity Release Timescales

BootsieBoo

Hi. I wonder if anyone has any advice or experience that you may be able to offer me.

My step mother passed away 10 mths ago. She and my father, who passed 5 years ago had equity release on their property. I cant remember how much they released exactly I think about £30k I think. The debt is now at £90k. 

The house has been on the market for 6 weeks at £280k. My step mother passed without a will so as soon as probate was sorted the house went on the market.

The house is a timber frame construction from the 80's. We had an offer on the property but the buyer couldn't get a mortgage due to the timber frame construction. So it seems the house is going to be difficult sell!

The equity release company have been very aggressive in our communications so far. The paperwork states we have 12 mths to sell the property (this leaves us 2 mths to sell it). We are concerned they will seize the property and sell it at a drastically reduced price just to gain their £90K.

Now I know my parents weren't mis-sold equity release as such as they knew what they were doing but should they actually have been allowed it with the timber frame construction?

Is there anyway to extend the deadline?

Any advice gratefully received.

BootsieBoo

Edit: They borrowed approx £60k 2013 and £5k in 2018.

MWT

BootsieBoo said:

Now I know my parents weren't mis-sold equity release as such as they knew what they were doing but should they actually have been allowed it with the timber frame construction?

It can be harder to get ER with timber frame construction, but nothing in that prevents a lender from lending if they want to do it...  ... and the same goes for mortgage lenders for your sale...

Certainly shouldn't be impossible for a buyer to get a mortgage as long as there is not something wrong with the house beyond being timber framed... (spray foam insulation for example)

BootsieBoo said:

Is there anyway to extend the deadline?

The agreement cannot be changed now, but the lender is unlikely to seek to take over conduct of the sale as long as they are happy that the property is being marketed at a reasonable price.

Have you only had the one offer so far, or were there others at lower prices that you have declined?

BootsieBoo

MWT said:

BootsieBoo said:

Now I know my parents weren't mis-sold equity release as such as they knew what they were doing but should they actually have been allowed it with the timber frame construction?

It can be harder to get ER with timber frame construction, but nothing in that prevents a lender from lending if they want to do it...  ... and the same goes for mortgage lenders for your sale...

Certainly shouldn't be impossible for a buyer to get a mortgage as long as there is not something wrong with the house beyond being timber framed... (spray foam insulation for example)

BootsieBoo said:

Is there anyway to extend the deadline?

The agreement cannot be changed now, but the lender is unlikely to seek to take over conduct of the sale as long as they are happy that the property is being marketed at a reasonable price.

Have you only had the one offer so far, or were there others at lower prices that you have declined?

We have only had that one offer so far which was slightly below asking which we accepted. We are going to lower the price this week. The house needs complete renovation and also is by 2 rivers and flooded once a good twenty years ago now, so there is a few obstacles! I should have also said its timber clad also but hasn't had spray insulation. 

Thanks for your comments. Hopefully they will give us the time we need.