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Equity Release

caveman38
caveman38 Posts: 1,315 Forumite
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in House buying, renting & selling
If a person raised money through an Equity Release Company and also used their recommended solicitor too without notifying his own. Is it possible on the persons death, the estate could be wound up and monies distributed without the ERC being aware. They weren't informed because the executor wasn't informed  personally and it wasn't entered in the will. 
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Comments

  • Keep_pedalling
    Keep_pedalling Posts: 22,015 Forumite
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    No because there would be a charge on the house preventing it being sold. 
  • caveman38
    caveman38 Posts: 1,315 Forumite
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    edited 30 January at 3:51PM
    Keep_pedalling said:
    No because there would be a charge on the house preventing it being sold. 
    Do you mean the ERC will have put a charge on the property at Land Registry. If so would that suggest that the house could be marketed and sold but not complete the sale. Thus wasting a lot of time and possibly money.
  • Martico
    Martico Posts: 1,232 Forumite
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    caveman38 said:
    Keep_pedalling said:
    No because there would be a charge on the house preventing it being sold. 
    What do you mean by "charge"?
    A register of a legal interest. Most common example is from a mortgage provider, which would put a charge on a property so that it can't be sold under their noses without the outstanding capital that they loaned being reimbursed 
  • caveman38
    caveman38 Posts: 1,315 Forumite
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    Thanks Martico. I googled KP reply and expanded my post.
  • theartfullodger
    theartfullodger Posts: 15,861 Forumite
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    Depends entirely what the ERC paperwork says.  Very very unlikely.

    Imho (late brother's house) they are thought by many to be money-grabbing "schemes/...." with a fondness for higher than market interest rates.  I have absolutely no plans to ever go near them.

    Best wishes to all.
  • Keep_pedalling
    Keep_pedalling Posts: 22,015 Forumite
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    theartfullodger said:
    Depends entirely what the ERC paperwork says.  Very very unlikely.

    Imho (late brother's house) they are thought by many to be money-grabbing "schemes/...." with a fondness for higher than market interest rates.  I have absolutely no plans to ever go near them.

    Best wishes to all.
    The people who usually get upset are children who find out that they are not getting the inheritance they thought they were getting, their parents on the other hand have have been able to enjoy a better standard of living with the cash they have managed to free up. 
  • theartfullodger
    theartfullodger Posts: 15,861 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Keep_pedalling said:
    theartfullodger said:
    Depends entirely what the ERC paperwork says.  Very very unlikely.

    Imho (late brother's house) they are thought by many to be money-grabbing "schemes/...." with a fondness for higher than market interest rates.  I have absolutely no plans to ever go near them.

    Best wishes to all.
    The people who usually get upset are children who find out that they are not getting the inheritance they thought they were getting, their parents on the other hand have have been able to enjoy a better standard of living with the cash they have managed to free up. 
    Fair enuf.  I was bothered about how much my brother had been charged and thus how much less the various charities he left £££ to eventually got.
  • GDB2222
    GDB2222 Posts: 26,675 Forumite
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    edited 30 January at 9:45PM
    theartfullodger said:
    Keep_pedalling said:
    theartfullodger said:
    Depends entirely what the ERC paperwork says.  Very very unlikely.

    Imho (late brother's house) they are thought by many to be money-grabbing "schemes/...." with a fondness for higher than market interest rates.  I have absolutely no plans to ever go near them.

    Best wishes to all.
    The people who usually get upset are children who find out that they are not getting the inheritance they thought they were getting, their parents on the other hand have have been able to enjoy a better standard of living with the cash they have managed to free up. 
    Fair enuf.  I was bothered about how much my brother had been charged and thus how much less the various charities he left £££ to eventually got.
    When I looked at these schemes, the interest rates were very high. Around 7%, from memory. Whereas normal mortgage rates are around 4-5% at the moment. 2-3% extra each year compounds up to a lot over 10 or 20 years.

    I can’t see why the interest charged on these loans is so much higher than for normal mortgages?
    No reliance should be placed on the above! Absolutely none, do you hear?
  • user1977
    user1977 Posts: 18,830 Forumite
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    caveman38 said:
    Keep_pedalling said:
    No because there would be a charge on the house preventing it being sold. 
    Do you mean the ERC will have put a charge on the property at Land Registry. If so would that suggest that the house could be marketed and sold but not complete the sale. Thus wasting a lot of time and possibly money.
    It's hardly likely that the executors would market the property before checking whether there are any secured loans.

    You'll probably get better advice if you explained the background to your question.
  • unforeseen
    unforeseen Posts: 7,432 Forumite
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    GDB2222 said:

    I can’t see why the interest charged on these loans is so much higher than for normal mortgages?
    Because you don't have to pay the equity release back until the house is sold. 
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