Equity worries - disabled lodger

equityone

Had a Equity release some 2 yrs ago with myself and partener which both are on the electoral register.

Our daughter who is registered with a disability. She currently lives at another property and is on the electoral register for that property. Her well being is not as hoped, so we want her to come home with us. Our Will does not list her as a beneficiary as advised for her benefit.

So if she came home and placed on the electoral register for our address.
Could this effect the rulings by the Equity lender for her to live us although she is not a beneficiary involving the property etc.

MWT

Your lender is going to require that she signs a waiver of her rights to remain in the property following the death or entry into long-term care of those named on the Equity Release agreement.

You cannot permit her to move in without advising your lender and her signing the release, failure to do this would breach the ER agreement. .

The electoral roll is not in itself a factor, nor is her being named as a beneficiary (...or not), merely residing in the property without a waiver in place is enough to cause a problem.

equityone

Thanks

Thought that may be the case.

She is mentally disabled 'Downs syndrome'. She can sign her name if asked to do so, but it has no meaning of why she signed or don't understands why if told/explained.

If she was asked to sign a waiver, would that be legal where she don't understand why etc.

We are her Carer dealing with DWP and others, on her behalf.

MWT

equityone said:

She is mentally disabled 'Downs syndrome'. She can sign her name if asked to do so, but it has no meaning of why she signed or don't understands why if told/explained.

If she was asked to sign a waiver, would that be legal where she don't understand why etc.

From your description she clearly lacks the capacity to sign the waiver, and if you are her only advocate, you could hardly be considered to be impartial in this matter.

This is one you are going to have to talk to your lender about before she moves in.

Being pragmatic, and I suppose blunt, in the circumstances that would trigger the sale of the property to repay the loan, assuming you both pre-decease her (or move into long-term care), she would not be able to continue living in the property on her own anyway so you might form the opinion that it is still in her best interests sign the waiver and then return home until that time, but this certainly not one to just get her to sign and not disclose the full details to your lender, and you'd probably have problems getting the required legal advice for her anyway...

chanz4

You will need a court of protection order