You are not obliged to repay the money you borrowed.
After your passing, it will be the responsibility of your heirs to settle the debt with the institution. The lifetime mortgage is structured in a way that ensures the debt is lower than the value of your property at that time. This design provides a safeguard to protect your estate and ensure that your loved ones can manage the repayment without any financial burden.
Heirs will typically have a period of one year to consider their options. During this time, they have several choices:
They can choose to sell the property, settle the debt, and retain the remaining proceeds as their own.
They can opt for a conventional mortgage to repay the reverse mortgage, allowing them to retain ownership of the property.
hey also have the option to use their own funds to repay the debt and keep the house.