Equity release estate query

stuart746

Hello, I am asking this question as power of attorney to my uncle who is in his mid 80s (and named executor to his estate). My uncle took out a equity release mortgage plan with a company towards the end of 2018 and this came with a no negative equity guarantee. At the time he still had 100k left on his mortgage and the equity release plan allowed him to stay in the property indefinitely, with a 6.5% annual interest rate if I recall correctly. The question I have is: if he stays in the property to the point of probate and the house is in a small amount of negative equity (hopefully this will not be the case as values are currently around 280k), will the equity release company be within their rights to request any equity shortfall is paid by the remainder of the estate? My uncle is keen to discuss his financial plans/wishes with me and as PoA I would like to be more informed of this and how it may impact his situation and the choices he makes. Thank you for any help.

Hoenir

These guarantees mean that the estate will never owe more than the property is worth when it is sold.