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Thomas, Lawyer
Category: UK Property Law
Satisfied Customers: 7617
Experience:  BA (Hons), PgDip, Practising Solicitor
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Parents took out an equity release mortgage which is now exceeding

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Parents took out an equity release mortgage which is now exceeding value of property. Building society failed to register any Legal charge at land register. Parents now deceased. What is the legal position?

Thanks for your patience.

I’m afraid that I don’t think the lack of registration is going to be of much practical use frankly. The charge is the security of the equity release mortgage, but the equity release mortgage itself is the reason why your parents owe a debt to the lender.

The fact that no charge has been registered does not mean that a debt is not owed to the lender by your parents, the fact that they executed the equity release mortgage documents meant that the debt is still owed. It makes it slightly harder to enforce because the lender would have to apply to Court for a charge now, whereas they could simply appoint receivers or proceed to take possession and sell without reference to court with a charge.

Were the property to now be sold without reference to the lender then the person selling (ie. the executors of the estate) would incur liability to the lender so it’s really not worth it I’m afraid.

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Kind regards,

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