An equity release mortgage, should they obtain the borrowers agreement before settlement


Apologies if this is posted in the wrong section (posted here because it's a debt)
I'm trying to help someone understand how funds are settled when an equity release mortgage is involved. Here's the scenario: The 20-year interest-only mortgage term has ended, and the original lender requested repayment of the debt. The borrower chose to settle the debt and stay in the property through an equity release mortgage. They successfully applied for the equity release mortgage, but disputed the settlement figure provided by the original lender, stating that it included higher costs and charges. They refused to sign the declaration and authority to proceed form until they received assurance from the equity release representative that nothing would be settled until they signed the form.
Despite this, the original mortgage lender
received the settlement funds without the signed form from the borrower. When
asked, the borrower's solicitor stated that the equity release lender's
solicitors completed the settlement without the signed declaration and
authority to proceed form, as they have the prerogative to do so.
Our questions are:
1. What is the purpose and legal standing of the 'declaration and authority to proceed' form? It seems like it has no purpose for the borrower if the equity release lender's solicitor has the prerogative to settle without it.
2. Since this involved an equity release
mortgage, who is responsible for physically paying the settlement money to the
original mortgage lender?
a. The equity release lender
b. The equity release lender's solicitor
c. The borrower's solicitor
3. Since this involved an equity release
mortgage, does it void or reduce the borrower's involvement? Everything
happened behind the scenes quickly and without communication with the borrower concerning the settlement of the original lender's debt.
Comments
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I think this might be better posted on the Mortgage board?
Mortgages & endowments — MoneySavingExpert Forum
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Thanks
Have posted on the mortgage board https://forums.moneysavingexpert.com/discussion/6544042/an-equity-release-mortgage-should-they-obtain-the-borrowers-agreement-before-settlement0
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