Fighting off the bank

[Dougie.Steel]

My wife has recently been diagnosed with dementia.
We had eqiity release in place to pay off the mortgage which had expired taken out at the height of the property bubble over 10 years ago.
As I am over 60 my wifes share of the property cannot be taken as an asset as it is my main and only residence.
However as the we cannot complete the equity relaese due to her suden decline.
The bank have threatened legal action to reclaim the money owed so I am facing losing my wife and my home and having to clear out all our stuff.
Any options? I feel very stuck.

 

[LadyA]

I know nothing about Equity Release, @Dougie.Steel , but wanted to welcome you to the forum. I am sure that you will find a lot of support here in the coming months. Meanwhile, you might like to give the Dementia Helpline a ring? I'm not sure if they can offer any advice on the equity release situation, but they have a lot of knowledge available at their fingertips, so may have some tips that will help point a way forward. You can contact them on 0300 222 11 22

 

[Bunpoots]

Hello @Dougie.Steel

I'm afraid I know nothing about equity release either but I wonder if its worth having a chat with someone at the Citizens Advice Bureau. They may be able to suggest a way forward.

 

[Dougie.Steel]

Hello @Dougie.Steel

I'm afraid I know nothing about equity release either but I wonder if its worth having a chat with someone at the Citizens Advice Bureau. They may be able to suggest a way forward.

 

[Dougie.Steel]

The equity release option is closed as my wife lacks capacity to sign now.
Its also the council and becoming homeless.

 

[marionq]

Were you in the process of getting equity release but now cannot pay your mortgage because no funds will be forthcoming? That is how it sounds. So it is the mortgage holder, the bank, which wants to reclaim your property. Would an interest only mortgage be possible or is that too out of your reach?

 

[Beate]

I'm guessing there is no LPA? You will have to apply for deputyship, with an emergency application for the equity release, but I don't know how long that would take to come through.

 

[Dougie.Steel]

I have power of attorney but this does not allow me to use her asset for no gain to her.
If I could stay in the property till she passes then I could act.

 

[Shedrech]

hello @Dougie.Steel and welcome
what a worrying situation for you both
just a thought, it could be considered that it's not in your wife's best interests to have to move home and go through that upheaval, plus having you stressed and worried which, as her carer, will have an effect on her - so it could be that overall it is in your wife's benefit for her Attorney to use finances to sort out the situation so that she retains her home and a share in the asset of the property
maybe a chat with a solicitor who specialises in elder issues may help
https://societyoflaterlifeadvisers.co.uk
sorry to ask, but do the bank/mortgage company know your situation, some can be really helpful when a client is in difficulties but wants to work with them to find a long term solution

 

[Beate]

I have power of attorney but this does not allow me to use her asset for no gain to her.
If I could stay in the property till she passes then I could act.

I'm sure you can act before! How is it in your wife's best interest to have you lose their home! It belongs to her too! Who said you weren't allowed to do anything? That sounds really wrong to me.

 

[Dougie.Steel]

Scared to tell the bank as I feel if they know that I don't want to sell or are able to get equity release they will go to court to get their money.
The mortgage has expired these last 11 years but we have always paid on time no arrears.

 

[Shedrech]

thing is @Dougie.Steel if the bank think you are ignoring the situation they are probably more likely to consider you won't work with them and take action you don't want
can you get to your local CAB and have a chat with someone there who specialises in financial issues
sometimes professionals such as accountants and solicitors give a free initial appointment so maybe try to have a chat with one local to you

it may help to talk with one of the advisors on the AS Helpline, they have a lot of knowledge and may be able to direct you on
https://www.alzheimers.org.uk/get-support/national-dementia-helpline
0300 222 11 22
Monday to Wednesday 9am – 8pm
Thursday and Friday 9am – 5pm
Saturday and Sunday

 

[nitram]

I agree with talking to the bank. If you explain everything to them you may be able to come to some arrangement eg. as has been said, interest only loan. Foreclosing the mortgage and forcing the house sale is a lot of hassle for them.

Assuming the house is in some form of joint ownership a trustee would have to be appointed to protect your wife's interests in any arrangements, you cannot sign both for yourself and for your wife as attorney.

As I understand it your wife agreed to equity release when she had capacity, I find it difficult to understand why the process cannot continue with you and a trustee signing documents.

 

[Daffy123]

Try the Citizens Advice Bureau.

 

[la lucia]

I have power of attorney but this does not allow me to use her asset for no gain to her.
If I could stay in the property till she passes then I could act.

If you have more than a state pension there are ordinary mortgages that are for under 80s. Talk to a mortgage advisor and look on various websites including Which? There shouldn't be a problem signing as POA - the property is still half in her name.

Another option is to downsize. But don't give up and don't go down the equity release road - they're not good at all. But do research and investigate all the options.