Quizzes & Puzzles10 mins ago
Power of attorney
My mother took out a equity release in 2007 for £25000 an d the repayment due is £85000. My mother is dying of MND in a nursing home and has been there for more than 6 months. I have just received a letter that gives me 14 days to vacate the property. If they had given me more warning I would have put the house on the market sooner. Apart from being insensitive I have looked at the contract and they are within their rights. My question is if I put the house on the market the proceeds are legally my mothers. I do however have power of attorney so can I buy somewhere else to live in her name so I am not effectively homeless?
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For more on marking an answer as the "Best Answer", please visit our FAQ.1. What PoA do you have? Is it a general PoA, and Enduring Power of Attorney or a Lasting Power of Attorney? (If either of the latter two has it been registered with the Court of Protection?)
2. They might be within their rights within the contract, however, in order to obtain possession and get you out, they may need a Court Order, depending on your rights of occupation - take legal advice urgently and take a copy of the contract with you.
2. They might be within their rights within the contract, however, in order to obtain possession and get you out, they may need a Court Order, depending on your rights of occupation - take legal advice urgently and take a copy of the contract with you.
2/3 years ago, when acting as executor for my Mothers estate, I had a similar, but not so brutal as yours, letter from the lender. After 'phoning and discussing the matter with them it transpired it was a 'form' letter. On discussion with a more senior person, it was readily agreed that i would have 6 months minimum to dispose of the property because of the very dire state of the property /mortgage market at that time. I kept them informed as to my efforts (Agents details, number of enquiries etc.) We ended up having a sensible relationship that culminated in them being extraordinarily helpful when the eventual buyer wanted to complete in very short order. Hope that helps.
If your mother has lost capacity you can only perform limited actions under the LPA unless it is registered. That is why I asked the question.
Theoretically, under the Mental Capacity Act, as an attorney you can act with all the powers of a beneficial owner. However, the difficulty you have is that if your mother dies and you are not the sole residuary beneficiary of the estate, the residuary beneficiaries will want the house sold. If you are the sole residuary beneficiary (and it includes the house - ie the house is not specifically bequeathed), I do not foresee any problems, other than the fact that if she has to make a contribution to care home fees, the LA may seek the sale of the "new house".
This particular case is extremely fact sensitive. I really can't emphasise enough that you should take legal advice from an appropriately qualified lawyer.
Theoretically, under the Mental Capacity Act, as an attorney you can act with all the powers of a beneficial owner. However, the difficulty you have is that if your mother dies and you are not the sole residuary beneficiary of the estate, the residuary beneficiaries will want the house sold. If you are the sole residuary beneficiary (and it includes the house - ie the house is not specifically bequeathed), I do not foresee any problems, other than the fact that if she has to make a contribution to care home fees, the LA may seek the sale of the "new house".
This particular case is extremely fact sensitive. I really can't emphasise enough that you should take legal advice from an appropriately qualified lawyer.
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