Aviva Lifetime Mortgage - repayment deadline

Copperfield123

Hi - has anyone had any experience with an Aviva Lifetime Mortgage? I have recently found out that my parents took one out and Aviva are saying that as they have moved into a care home I now have six months to pay this back. Everywhere I read says twelve months…..I have asked for a copy of the original agreement they signed so I can check this. The house is about to go on the market but there is no guarantee it will see within six months. Are Aviva flexible at all? Any advice would be very much appreciated.

silvercar

All you can do is get it on the market and sold as soon as you can. That way Aviva will know you are doing what you can. 6 months or 12, interest will mount up until it’s sold, so the earlier the better.

If their terms were 6 months, there is little they can do if it is not sold in that time. Worst they could go to court for repossession, but that would take them months, by which time you would hopefully have sold. Even then, showing a judge you have been trying to sell from the get go could mean they don’t get repossession. Even if they did, they would sell and are duty bound to get the best price they can. Any excess after the mortgage is cleared would be returned to your parents.

MyRealNameToo

Its very possible terms have changed over time, you stick with the terms you agreed to when taking it though.

Yes, as long as you are making progress etc then generally the insurers will grant you more time. Keep them informed of progress though if you are getting close to the time limit.

dunstonh

Aviva is not aggressive on this point and won't proceed with repossession if it takes longer than 12 months, unless the property is not being actively marketed and they believe that the seller or their representatives are taking the mickey. They just look for periodic updates. when it gets close to 12 months from the date of going into a care home.