Lifetime Equity Release from Aviva

Jolly23
Jolly23 Posts: 2 Newbie
in Loans
Does anyone have experience of how Aviva operates after a family member has died? On their website it just says the property will be sold immediately without going into details. Do Aviva sell it at auction or does the person named in the will have time to find an estate agent and redecorate etc.?

Comments

  • antrobus
    antrobus Posts: 17,386 Forumite
    Jolly23 wrote: »
    Does anyone have experience of how Aviva operates after a family member has died? On their website it just says the property will be sold immediately without going into details. Do Aviva sell it at auction or does the person named in the will have time to find an estate agent and redecorate etc.?

    Experience, no. But isn't Aviva's equity release simply a mortgage?

    Family member's estate has to go to probate. The executor or whatever, puts the property up for sale, tries to get the best price, and uses the proceeds to settle the debt with Aviva.
  • dealer_wins
    dealer_wins Posts: 7,334 Forumite
    antrobus wrote: »
    Experience, no. But isn't Aviva's equity release simply a mortgage?

    Family member's estate has to go to probate. The executor or whatever, puts the property up for sale, tries to get the best price, and uses the proceeds to settle the debt with Aviva.

    I would say thats how it works, no way would they send properties to auction!
  • Jolly23
    Jolly23 Posts: 2 Newbie
    Ok I've just checked their faq page again and either I misread it a few weeks ago or they have made a slight change. It says "For a lifetime mortgage the amount owed to us is usually paid back from the proceeds of the sale of the property. Any money left over would be paid to the beneficiaries. The estate has up to 12 months to repay the lifetime mortgage. The interest continues to accrue daily until it is repaid.".


    So it does seem that the estate can take their time and get the best price.


    Obviously I know that equity release is essentially just a mortgage but it seems to differ from a normal mortgage as the lender is buying the property from the borrower and charging a hefty compound interest rate. That's were my confusion comes from.
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
    First Anniversary Name Dropper First Post
    Are you asking as your parents are thinking about this type of equity release or have they already done it and you are in the situation you describe?
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