With a typical lifetime mortgage, the outstanding loan and accrued interest usually become repayable when the last borrower dies or permanently moves into long-term care. The equity release provider should then be notified, and the estate’s personal representatives will need to arrange repayment.

The property is commonly sold to repay the lifetime mortgage. However, selling is not always the only option. Beneficiaries may be able to keep the property if they can repay the outstanding debt another way.

If the plan is held jointly, the position is different. The lifetime mortgage will normally continue after the first borrower dies. Repayment is usually triggered when the surviving borrower dies or permanently enters long-term care, subject to the plan terms.

Any money left after repaying the mortgage, sale costs and other estate liabilities remains part of the estate. It can then be distributed under the Will or intestacy rules.

At TBI Conveyancing, our specialist property team deals with equity release and lifetime mortgage legal work across England and Wales. We understand the questions these arrangements can create for borrowers, executors and families.

In this guide, we explain:

• what happens to equity release when someone dies;
• when a lifetime mortgage becomes repayable;
• what happens with a joint equity release plan;
• whether the property has to be sold;
• whether children or other beneficiaries can keep the house;
• how interest continues after death;
• what happens if the property is worth less than the mortgage;
• how equity release can affect inheritance;
• how probate fits into the process;
• what executors need to do after the borrower dies.

We’ll also explain the role of a conveyancing solicitor when the lifetime mortgage needs to be repaid and the property is sold.

What Happens to Equity Release When Someone Dies?

When someone dies with a lifetime mortgage, the loan does not disappear. It usually needs to be repaid from the estate, subject to the terms of the plan.

The process will typically look like this:

1. The equity release provider is notified of the death.
   This is usually done by the executor, administrator or surviving joint borrower.
2. The outstanding balance is confirmed.
   The provider will confirm the amount owed, including any accrued interest.
3. The estate decides how the loan will be repaid.
   This may involve selling the property or using other available funds.
4. Probate or estate administration progresses.
   The personal representatives deal with the wider estate and obtain any authority needed.
5. The property is sold or other funds are raised.
6. The lifetime mortgage is repaid.
7. Any remaining property value stays within the estate.
   It can then be distributed to beneficiaries under the Will or intestacy rules.

The exact process depends on the plan terms, whether the mortgage was joint or individual, and how the family intends to repay the debt.

When Does a Lifetime Mortgage Become Repayable After Death?

With a single-borrower lifetime mortgage, the loan will normally become repayable after the borrower dies. The lender will then expect the estate to arrange repayment under the terms of the plan.

With a joint lifetime mortgage, the position is different. The loan will usually remain in place after the first borrower dies. It normally becomes repayable when the last surviving borrower dies or permanently moves into long-term care.

Repayment does not usually need to happen immediately on the date of death. The equity release provider will normally allow the estate time to deal with probate, property arrangements and repayment.

Many major providers commonly allow around 12 months for repayment. However, this is not a universal legal deadline. The exact period depends on the individual lifetime mortgage terms.

Executors or other personal representatives should check the plan documents and confirm the repayment deadline directly with the provider.

How Long Do You Have to Repay Equity Release After Death?

Many lifetime mortgage providers give the estate a set period to repay the loan after the borrower dies. Some major providers currently allow around 12 months, although the exact deadline depends on the individual mortgage terms.

Executors or other personal representatives should contact the provider promptly. They should confirm:

• the current amount outstanding;
• whether interest continues to accrue;
• the repayment deadline;
• what documents the provider requires.

If the property needs to be sold, starting the legal process early can help prevent avoidable delays. TBI Conveyancing can handle the conveyancing when selling a property, including dealing with the registered title, obtaining the lender’s redemption figure and repaying the mortgage from the completion funds.

Some providers may allow additional time where a genuine delay occurs and clear progress is being made. However, interest will usually continue until the lifetime mortgage is fully repaid, so the amount owed can continue increasing during probate and the property sale.

What Happens to a Joint Equity Release Plan When One Person Dies?

If both partners are named borrowers on a joint lifetime mortgage, the plan will normally continue after the first borrower dies. The surviving joint borrower can usually remain in the property under the existing plan terms.

The equity release provider should still be notified of the death. They may ask for documents such as:

• a copy of the death certificate;
• details of the lifetime mortgage;
• information confirming the surviving borrower.

The loan will usually become repayable only when the last surviving borrower dies or permanently moves into long-term care, subject to the individual mortgage terms.

It is important to distinguish between a surviving joint borrower and a partner who simply lives in the property. A spouse, partner or family member who is not named on the equity release plan may not have the same right to remain.

Their position can depend on ownership, occupation rights and the terms of the lifetime mortgage.

What If My Partner Lives With Me but Is Not Named on the Equity Release Plan?

A partner or family member who lives with you is not automatically treated as a joint borrower on a lifetime mortgage.

If the equity release plan is in your sole name, the mortgage may become repayable when you die. This can be the case even if your spouse, partner or another relative still lives in the property.

Their ability to remain may depend on:

• whether they own any share of the property;
• their legal occupation rights;
• the terms of the lifetime mortgage;
• any other legal arrangements affecting the home.

If you are considering equity release, raise this issue before entering the plan. This is especially important if someone expects to remain in the property after your death.

In some circumstances, you may also be considering changing the legal ownership of your home. Our guide to transfer of equity conveyancing explains how adding or removing someone from a property title works. Any ownership change should be considered alongside your lender’s requirements and appropriate financial and legal advice.

Where the borrower has already died, the surviving occupier may need legal advice to understand their position.

Who Needs to Tell the Equity Release Provider About the Death?

The equity release provider should be told about the death as soon as reasonably practical. This allows them to update their records and explain what happens next.

Notification will usually come from:

• the executor named in the Will;
• an administrator where there is no executor;
• a surviving joint borrower;
• a family member acting on behalf of the estate.

The provider may ask for a copy of the death certificate, plan or account details, and contact information for the personal representative.

They may also request probate documents later in the process where these are needed.

Importantly, the family does not usually need to wait for a Grant of Probate before making initial contact. The provider can often begin gathering information and explaining the repayment process before the grant is issued.

Does the House Have to Be Sold When You Die With Equity Release?

Usually, the property is sold to repay a lifetime mortgage after the borrower dies. However, an equity release property sale is not always compulsory if the outstanding debt can be repaid another way.

The provider will normally be entitled to receive:

• the capital originally borrowed;
• any accrued interest;
• any applicable contractual charges.

In many cases, the lifetime mortgage repayment is made from the proceeds of selling the property. If a sale is required, our property sale conveyancing service can handle the legal process, obtain the lender’s redemption figure and repay the outstanding mortgage from the completion funds.

However, beneficiaries may sometimes repay the debt using:

• money from elsewhere in the estate;
• their own funds;
• refinancing, where suitable and available;
• another agreed source of repayment.

Beneficiaries do not usually have an automatic right to take over the existing lifetime mortgage. If they want to keep the property, the lender’s charge will normally need to be repaid and discharged first.

Can My Children or Beneficiaries Keep the House?

Potentially, but they would normally need to repay the outstanding lifetime mortgage first. A beneficiary cannot usually inherit the property free of the lender’s legal charge while leaving the equity release debt unpaid.

If they want to keep the house, repayment could potentially come from:

• personal savings;
• inheritance from elsewhere in the estate;
• mortgage borrowing;
• other suitable finance.

Any new mortgage would be subject to the lender’s normal affordability and eligibility checks. There is no guarantee that refinancing will be available.

Once the lifetime mortgage has been repaid, the lender’s charge can be discharged. The property can then be dealt with as part of the wider estate administration.

Beneficiaries should not assume the existing equity release product can simply transfer into their name. Lifetime mortgages are normally arranged for the original borrower or borrowers, so keeping the property usually means finding another way to clear the outstanding balance.

What Happens to the Interest After the Borrower Dies?

Interest on a lifetime mortgage will usually continue to accrue until the outstanding balance is fully repaid. This means the amount needed to clear the mortgage can keep increasing after the borrower dies.

The executor or personal representative should ask the equity release provider for the current redemption figure. This shows how much is owed at that point, including the original borrowing, accrued interest and any applicable charges.

Because interest continues to build, that figure may change while:

• probate or estate administration is progressing;
• the property is being marketed;
• a buyer is being found;
• conveyancing is taking place.

If the property is sold, the conveyancing solicitor will normally obtain an up-to-date redemption statement before completion. The lifetime mortgage is then repaid from the sale proceeds, and the lender’s legal charge can be discharged.

Executors should therefore understand both the repayment deadline and how the balance may increase over time. However, the property should still be marketed properly rather than rushed into a sale simply to reduce interest.

What Happens If the Property Is Worth Less Than the Lifetime Mortgage?

If the property is worth less than the outstanding lifetime mortgage, the estate may be protected by a no negative equity guarantee.

Lifetime mortgages that meet Equity Release Council product standards include this protection. Provided the relevant conditions are met and the property is sold appropriately, the estate should not have to repay more than the net proceeds from the property sale.

For example, if the lifetime mortgage balance is higher than the amount left after selling the property and paying eligible sale costs, the guarantee can prevent the estate from having to cover the shortfall from other assets.

This also helps protect beneficiaries from becoming personally responsible for the remaining mortgage debt.

However, not every equity release product automatically includes this protection. The executor should check the original plan terms and confirm whether a qualifying no negative equity guarantee applies.

Do You Need a Solicitor to Repay Equity Release After Death?

If the property needs to be sold after someone dies with equity release, you will need a conveyancing solicitor to handle the legal sale and repay the lifetime mortgage.

At TBI Conveyancing, we deal with the property and mortgage side of the process from start to finish. Our experienced team can:

• check the registered title and lender’s legal charge;
• obtain an up-to-date redemption statement;
• deal with the buyer’s solicitor;
• complete the property sale;
• repay the lifetime mortgage from the sale proceeds;
• arrange for the lender’s charge to be discharged.

Our equity release conveyancing team understands lifetime mortgages and the legal requirements involved. If the property is being sold, we can also manage the full property sale conveyancing process.

You may need separate probate or estate-administration advice as well. We’ll keep our role clear and guide you through the conveyancing in plain English, with honest, competitive fees and support across England and Wales.

What Happens to Any Money Left After Equity Release Is Repaid?

Any money left after the lifetime mortgage and relevant sale costs are paid remains part of the deceased person’s estate.

The sale proceeds may first need to cover:

• estate-agent fees;
• conveyancing costs;
• the outstanding lifetime mortgage;
• other relevant liabilities.

Any remaining balance can then pass to the beneficiaries.

If there is a valid Will, the money is distributed according to its terms. If there is no valid Will, the intestacy rules determine who inherits.

The remaining proceeds do not automatically pass to the deceased person’s children. Who receives the money will depend on the Will, the intestacy position and any other liabilities that still need to be settled.

How Does Equity Release Affect Inheritance?

Equity release can reduce the amount eventually left to beneficiaries because the lifetime mortgage is repaid from the property’s value before the remaining equity passes through the estate.

The final impact will depend on several factors, including:

• how much was originally released;
• whether further drawdowns were taken;
• the interest rate;
• whether the borrower made any repayments;
• how long the mortgage remained in place;
• how the property’s value changed over time.

Because interest can accumulate over many years, the outstanding balance may become significantly higher than the original amount borrowed.

Some lifetime mortgage products include options designed to preserve part of the property’s value for beneficiaries. However, the protection available varies between providers and products.

Anyone concerned about protecting an inheritance should understand the specific plan terms before proceeding with equity release.

Does Equity Release Affect Inheritance Tax When You Die?

Equity release can affect the value of an estate, but it does not provide a simple or guaranteed way to reduce inheritance tax.

The tax position depends on the deceased person’s wider circumstances. Relevant factors may include:

• the value of the property;
• the outstanding lifetime mortgage;
• whether any released money remains in the estate;
• gifts made during the borrower’s lifetime;
• available inheritance tax allowances and exemptions;
• other assets and liabilities.

For example, borrowing against a property creates a debt that may reduce the estate’s net value. However, released money that remains as cash or other assets may still form part of the estate.

Gifts can also have separate inheritance tax consequences.

Because the rules depend heavily on individual circumstances, anyone considering equity release for inheritance or tax-planning reasons should take specialist tax or estate-planning advice.

What Is the Role of Probate When Someone Dies With Equity Release?

Probate often forms part of the process when someone dies with equity release, but families do not usually need to wait for the Grant before taking every step.

The personal representatives can often start by:

• notifying the equity release provider;
• requesting account and balance information;
• gathering details about the estate;
• preparing the property for a possible sale.

A Grant of Probate, or Letters of Administration where there is no Will, may still be needed before certain transactions can be completed. This can include completing the sale of the property in many cases.

At TBI Conveyancing, we regularly help families with the property side of this process. We can explain what needs to happen before a sale can complete, deal with the lender’s legal charge, obtain the redemption figure and handle the conveyancing through to completion.

That means you do not have to work out the property process alone. We can guide you through each legal step in clear, practical terms while the wider estate matters are being dealt with.

What Happens With a Home Reversion Plan After Death?

A home reversion plan works differently from a lifetime mortgage because the homeowner has already sold some or all of their ownership interest in the property to the provider.

When the homeowner dies, their right to remain in the property will usually come to an end under the terms of the agreement. The property will then normally need to be sold or otherwise dealt with in line with that contract.

The home reversion provider is entitled to the share of the property value set out in the agreement. Any remaining share belonging to the deceased then forms part of their estate.

There is no universal deadline for completing this process. Timing can depend on the plan terms, the property sale and the wider estate circumstances.

The agreement should therefore be checked carefully so the personal representatives understand what needs to happen and when.

What Happens If the Borrower Moves Into Long-Term Care Instead of Dying?

Death is not the only event that can make a lifetime mortgage repayable. If the last borrower permanently moves into long-term care, the plan will generally come to an end under its terms.

For a joint lifetime mortgage, the position can be different. If one borrower moves into care but the other eligible borrower continues living in the property, the mortgage may normally remain in place.

The exact position depends on the individual plan terms and the circumstances of the move.

This is why lifetime mortgages are commonly described as becoming repayable when the last borrower either dies or permanently enters long-term care.

If long-term care becomes likely, it is sensible to check the mortgage terms early. This can help the borrower, family and advisers understand when repayment may be triggered and what will happen to the property.

What Should Executors Do After Someone With Equity Release Dies?

If you are dealing with the estate of someone who had a lifetime mortgage, it helps to work through the process in a clear order.

1. Find the Lifetime Mortgage Documents

Locate the provider details, account information and any paperwork relating to the plan.

2. Notify the Provider

Tell the equity release provider about the death and provide the documents they request, such as the death certificate.

3. Confirm the Outstanding Balance and Repayment Terms

Ask for:

• the current mortgage balance;
• details of ongoing interest;
• the repayment deadline;
• any documents the provider still needs.

4. Begin Probate or Estate Administration

Progress the Grant of Probate or Letters of Administration where required.

5. Decide How the Mortgage Will Be Repaid

In many cases, this means selling the property. Other repayment options may sometimes be available.

6. Prepare the Property for Sale

Arrange valuations, choose an estate agent and begin the legal sale process where necessary.

7. Redeem the Lifetime Mortgage

The conveyancing solicitor obtains an up-to-date redemption figure and repays the lender from the completion funds.

8. Deal With the Remaining Estate Value

Any money left after the mortgage, sale costs and other liabilities are settled can then pass to the appropriate beneficiaries.

How TBI Conveyancing Can Help With Equity Release and Property Sales

We can help with the legal work connected to equity release both during your lifetime and after death.

Our experienced conveyancing solicitors can assist with:

• setting up a lifetime mortgage;
• selling a property with equity release in place;
• obtaining and checking redemption figures;
• repaying the lifetime mortgage on completion;
• dealing with the lender’s registered legal charge;
• property transactions arising after the borrower dies.

If you are considering equity release, or dealing with a property after someone has died, we can explain the legal steps in plain English and handle the conveyancing from start to finish. Contact us today.