Your lifetime mortgage has a ‘No Negative Equity Guarantee’. This means that if the sale price isn’t enough to pay off the outstanding balance, we won’t ask for the difference to be paid (known as a ‘shortfall’).
If you’re worried that the sale price of your property won’t be enough to pay off your lifetime mortgage, you should let us know straight away. We’ll need to approve any sale for less than the outstanding balance. When considering whether to approve the sale, we’ll carry out an independent valuation of the property to make sure that you’re selling it for a fair price. The ‘No Negative Equity Guarantee’ requires the property to have been properly maintained. If it’s been allowed to fall into disrepair, we’ll ask for the shortfall to be paid.
Leave a Reply