What happens on my death?

Lifetime mortgage

On your death (or second death for a joint plan), the loan and interest are due to be repaid. This is normally done by the administrators of your estate selling your property, repaying the debt out of the proceeds. 

Home reversion plan 

Your property will be sold and the proceeds allocated according to the percentage of your property that you sold. If you sold 30% of it under your home reversion plan, the home reversion company will be entitled to 30% of the proceeds of the sale of your property, with the remaining 70% being made available to the beneficiaries of your estate. 

Involving your family 

We always recommend involving your family when you are considering an equity release over 55 scheme, so they understand the contract and what this means for their inheritance. 

If your heirs want to retain your property 

Generally, with a lifetime mortgage they are able to do so, providing they can pay off the total amount oved to the provider (original debt plus interest) within six to twelve months of your death. With home reversion schemes, this is not normally possible.

‘Our 55+ Equity Release Adviser went through everything very thoroughly and made sure I understood at all stages of the process.’

NE, successful over 55 equity release scheme applicant, Kent

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