Where the plan is in joint names, the surviving partner can continue to stay in the home. On the death of the surviving partner, the property is sold, and the mortgage will be repaid. Any balance will be distributed in accordance with any will(s) made.
Where the plan is in one name, the amount owed to the lender is usually paid back from the proceeds of the sale of the property. Any money left over would be paid to the beneficiaries. The estate usually has up to 12 months to repay the lifetime mortgage, but the interest continues to accrue daily until it is repaid.
