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    • Jolly23
    • By Jolly23 12th Jul 18, 8:43 PM
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    Jolly23
    Lifetime Equity Release from Aviva
    • #1
    • 12th Jul 18, 8:43 PM
    Lifetime Equity Release from Aviva 12th Jul 18 at 8:43 PM
    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.?
Page 1
    • antrobus
    • By antrobus 12th Jul 18, 10:29 PM
    • 16,231 Posts
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    antrobus
    • #2
    • 12th Jul 18, 10:29 PM
    • #2
    • 12th Jul 18, 10:29 PM
    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.?
    Originally posted by Jolly23
    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
    • By dealer wins 12th Jul 18, 10:53 PM
    • 6,086 Posts
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    dealer wins
    • #3
    • 12th Jul 18, 10:53 PM
    • #3
    • 12th Jul 18, 10:53 PM
    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.
    Originally posted by antrobus
    I would say thats how it works, no way would they send properties to auction!
    Choose life
    • Jolly23
    • By Jolly23 13th Jul 18, 1:49 AM
    • 2 Posts
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    Jolly23
    • #4
    • 13th Jul 18, 1:49 AM
    • #4
    • 13th Jul 18, 1:49 AM
    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
    • By foxy-stoat 13th Jul 18, 11:48 AM
    • 3,041 Posts
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    foxy-stoat
    • #5
    • 13th Jul 18, 11:48 AM
    • #5
    • 13th Jul 18, 11:48 AM
    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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