Question Re Equity Release

obsessed | 11:27 Sun 09th Feb 2025 | Law

22 Answers

2 family members took equity release many years ago and one has since died. A daughter moved in with her father in the house about 6 years ago as she was homeless. If her father dies can she legally stay in that property until she dies or will it have to be sold even if it's left to her as the only daughter

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Hymie

It might depend on the terms of the equity release – but as the equity company owns a percentage of the house (value), she will only be bequeathed her father’s share of the property on his death.

Some of these equity release schemes were a very bad option; equity firms charged a high interest rate, when the loan repayment ultimately cannot be defaulted on.
Some came with a guarantee that they would have an upper limit on the percentage of the total house value that they could claim.

I suggest you read the equity release contract that your family members signed.

barry1010

It will have to be sold unless your daughter can raise the money to repay the loan and interest. She will not have a legal right to remain in the property.

Peter Pedant

yes. one word answer - dont !

and the longer answer depends on twhat the equity release agreement says.

god the mods have let me back to answer a law question: a little sunday miracle in itself

we need Barmaid- accurate , fascinating, heart stealer, etc

Peter Pedant

She will not have a legal right to remain in the property.

bit sweeping:but hell - he's a mod ! - Barmaid we need you to sort out the chaos !

( she may have no legal rights but may have equitable rights ( to stay or not) Barmaid - help !

"An "equitable right" is a legal right that is recognized and enforced by a court of equity, based on principles of fairness and justice, rather than strict legal rules, and is distinct from a "legal right" which derives authority from a legal source; a common example is a beneficiary's interest in a trust, where they have an equitable right to the property held by the trustee. "

this is second year Law at uni stuff - Barmaid !

-- answer removed --

Peter Pedant

https://www.moneyrelease.co.uk/What-Happens-To-Equity-Release-Upon-Death/#:~:text=The%20surviving%20plan%20holder%20may,of%20the%20first%20co%2Downer.

there is quite lot on this awful investment here. Alot of it willl not coannot applyto the girl if she is homeless and without income

Modster

Peter Pedant - you were made aware of the fact that it was your continued references to the Mods & moderation in general that led to your suspension.

If you want to be suspended again, carry on - if not, please continue to post without such references.

barry1010

It is a condition of equity release that any adults not party to the contract but living in the property sign a waiver stating they release any rights to the property.

Otherwise it could be never ending if they have children of their own

Peter Pedant

Otherwise it could be never ending if they have children of their own

I er think O great one that is the question - right of succession - ( like the old 1967 Landand rent law)

and it depends on the signed document

Peter Pedant

Barmaid Help - you never get censored !

It is a condition of equity release that any adults not party to the contract but living in the property sign a waiver stating they release any rights to the property.

Ay yes but say she moved in later ?

and who is asking the question ?

barry1010

The question is relating to their daughter, not future grandchildren

-- answer removed --

Peter Pedant

oh dear