The plan ends on the death of the last borrower. Personal representatives notify the lender, interest continues to accrue at the contractual rate, and the lender allows a defined period — commonly twelve months — for the property to be sold and the loan repaid. Where the plan meets Equity Release Council standards, a no-negative-equity guarantee applies: the estate never owes more than the net sale proceeds, and beneficiaries cannot inherit the debt. Any surplus above the balance passes to the estate exactly as it would without the plan. Beneficiaries have a genuine choice. They may repay the loan from their own resources and retain the property, which is common where a family member wants to keep the home. Where the property is sold, most contracts permit repayment without an early repayment charge following the death of the last borrower. On the first death of a couple, nothing is triggered. The survivor continues on the same contract, at the same rate, with the same drawdown and repayment facilities. The practical adviser action is to leave the family a short written note — the lender, the plan reference, the contact number and the repayment window — with the client's will.
Client-friendly explanation
When the last borrower dies, the loan is repaid, usually from selling the home. Your family can never owe more than the property sells for, and they can choose to repay it and keep the house.
Last verified 2026-09-13 · Effective from 2026-09-13 · editorial
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