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There is a technical possibility to use the assets from Heroes 7. Moreover, it is much easier than using the assets from Heroes 6, because Heroes 7 was made on Unreal Engine, and they didn't put much effort into it. In other words, it is actually quite easy to extract models, textures, and skeletons with animations from the game. It's a pity that you can't directly import the skeletons with animations into Heroes 5, and you'll still have to adapt them to the native skeletons of Heroes 5, plus, again, you'll have to reduce the number of polygons.
But from a legal point of view, I honestly don't quite know. It seems that as long as you don't sell these assets, everything is fine, but it also seems that it isn't. However, in theory, someone would have to be sufficiently concerned about it to sue you. It is unlikely that Ubisoft will take any action because of a couple of models. And there are many examples on the internet of assets from one game being used in other games. Moreover, these games are less related to each other than Heroes 5, 6, and 7. In general, it's all a bit of a gray area; it seems like you can, but it also seems like you can't. That is, Ubisoft always has the opportunity to crack down, but the question is, do they need to? Especially considering their level of interest in the Heroes series.
Even regarding Heroes 6, it's not entirely clear. It seems that it was said that the assets from Heroes 6 can be used for Heroes 5. But who gave this permission? And is there any guarantee that this permission has any legal force, or will it simply be forgotten in the event of some kind of dispute?
In theory, of course, it would be great, and it would be more interesting to do everything from scratch, not to use the assets from Heroes 6, 7, etc., but to reach that level ourselves. But firstly, this is much less in demand because, for the most part, people want to see "what it's like," and secondly, it is much more difficult and takes longer.