Equity Release Taken In 2001 Of £37000 Roughly How Much Would Be Repayable Now?

[Suetheramble]

Just need a rough guide please Thank you

[dannyk13]

Depends on what the interest on the loan was when you took it out.

[dannyk13]

Do you not get an annual statement from lender ?. This wold normally show how much you owe.

[fiction-factory]

Depends on the interest rate, fees and repayments but assuming no fees/repayments and a compound interest rate of 7% (typical now for this type of equity release mortgage), the repayment amount now would be around £125000

[fiction-factory]

Typically the repayment amount doubles every 10 years or so

[hellywelly4]

You should be able to contact the lender for a figure.

[fiction-factory]

From experience there would have been an annual statement

[Suetheramble]

Thank you for your time. I enquire for a friend whose parent is dying and has just discovered a equity release has been taken out - she wants to be prepared for the bad news of both death and debts!

[dannyk13]

Sue,if the equity release was in the name of the parent then on her death the house becomes the property of the lender who will sell it and take what is owed from the proceeds.

[fiction-factory]

Yes, as danny says, the debt will normally be repaid from the sale of the property and in event belong to the estate not to any beneficiaries. It's highly unlikely the equity release company would have allowed the debt to come close to the value of the property.
Is this parent a widow/widower and does anyone else live there?

[ubasses]

There are 2 different ways of releasing equity like this, with both the borrower retains ownership of the property, and a charge is registered against it. The lifetime equity release on sale will have to repay the amount of the loan plus all interest accrued. Home reversion equity release means that a percentage of is used to release cash, but for a sum much less than they are paid. On death the heirs are guaranteed the % retained plus growth in house prices. The remaining % is repaid to the lender.
This is, of course, as long as a reputable Company has been used.

[ubasses]

That should read 'a sum much less than they WERE paid, and I should have added the lender gets the % repaid PLUS GROWTH.