Equity release company demanding payment but one parent stil alive

[Lesley60]

Hi the Mortgage was in both parents names. I notified them that my dad had passed and mum had gone in to a nursing home for palliative care,  so she will not be going back home. I have a year to sell the property with  3 monthly checks on progress

[Lesley60]

Hi 

  Dad left everything to mum in is will so me and my brother can't sell whilst she is still alive as she doesn't have the capacity to give us permission.  My main concern is the Mortgage and the amount of interest it is accumulating ever day. 

[Lesley60]

I don't have to T&Cs and wasn't even aware they had taken this out .

The 3 months checks are just a progress check to see how we are getting on with the sale of the house. 

 Solicitor advised to wait as mum was given a few weeks to live that was 8 weeks ago now and is doing ok at the moment.  

  Solicitor did say could apply for Deptoship but could take up to 2 years and is very expensive. 

[Lesley60]

No this is the solicitor they left their wills with in 2012

[Lesley60]

The company is called Hodge Lifetime .But was called Hodge Equity release when they took it out. It also says the loan along with any interest will be payable when you die or go into full time care  interest rate is fixed at 6.21%. Not sure if this information is of any use 

[Lesley60]

Hi Honeybee13

 

   It was taken out in 2007

[Lesley60]

On 27/04/2021 at 20:31, Andyorch said:

If you can get hold of this policy and check.... if its a Lifetime Mortgage there is no requirement to sell anything to the equity release provider, but you will have given them a legal charge over your home (like a mortgage) which will become repayable, together with accrued interest, when either die or move into a care home.

 

If its a Home Reversion Plan you have to sell part or all of your property to the equity release provider. In return, you will receive a lump sum or agreed instalment payments and retain the right to live in the property (rent free) for the rest of your life. Following a death, the property will be sold and the proceeds of sale used to settle your equity release debt.

 

[Lesley60]

It's a Lifetime Mortgage which they will wait a year for the money, and then will claim the property if it hasn't been repaid in that time 

[Lesley60]

On 26/04/2021 at 13:45, Ethel Street said:

I've no experience with equity release but have had some dealings with Power of Attorney (PoA).

 

The solicitor is correct that friend's mother can only grant PoA while she still has mental capacity. As it seems that friend's mother no longer has mental capacity a PoA is not possible. And obviously the Executor has no role in this because the mother is still alive.

 

I'm surprised solicitor didn't explain what the alternative is, applying to the courts for a Deputyship. Read up on that here  Deputies: make decisions for someone who lacks capacity - GOV.UK (www.gov.uk)  Then ask the solicitor if they think it's the best route to take.

 

Unfortunately applying for Deputyship is considerably more expensive, time-consuming, and burdensome than a PoA.

 

As a matter of interest who is paying the care home fees? How did they get authorisation to do that? 

 

 

 

[Lesley60]

Ethel street

  Mum was a fast track, palliative care admission to a nursing home which is being funded by local council for 12 weeks and will then be reassessed.  My dad was her carer so she can no longer live in the house on her own