Can My Family Take Ownership Of My House When I Die With Equity Release?
There are no scripted rules as to how the equity release mortgage must be repaid following the death of the last surviving homeowner. Lenders do provide flexibility in this department by most offering a 12 month grace period during which the beneficiaries can decide on how to repay the equity release mortgage. This is usually via the sale of the property, however it could be from their own source of funds.
The reason for this could be that they wish for the property to be transferred into their own name & either move into the property themselves or rent the property out for income purposes. Therefore, the choice is theirs, however complications could arise should there be more than one beneficiary as all parties need to be in agreement with this action and that they still receive their share of the estate as designated in the deceased’s Last Will & Testament.