Alfred was an 81 year old divorcee who had expressed the wish to take out Equity release on his property. The solicitor conducting the transaction was concerned that Alfred did not fully understand the necessary information to take out an equity release mortgage.
Upon meeting Alfred it transpired that he was very forgetful and that it was his son who had suggested he take out Equity release. Alfred provided several different versions of why he wanted to take out Equity Release before stating it was to pay for his son’s children to go to school.
Furthermore, Alfred was unable to understand the impact of equity release upon the amount his children would inherit believing they would inherit the full value of the house, regardless of the amount outstanding on the equity release loan.
It became evident that Alfred was not only financially vulnerable but that he lacked capacity to take out an equity release mortgage.
If you have concerns that someone is under duress to take out Equity release or that they might not have the capacity to do so, please get in touch.