Advice for daughter please - If my Gran is a guarantor for my mortgage, what will happen when she passes away

[phatram]

Phatram's daughter here...

 

If my Gran is a guarantor for my mortgage, what will happen when she passes away?

 

If the guarator is no longer alive, how does this affect the contract / terms of the mortgage?

 

I'm hoping she'll be sticking around for a long while yet so my wages will have increased considerably and I will be able to afford the mortgage on my own anyway.

 

many thanks,

 

Not-so-phatram! x

[steven4064]

Hi there not-so-phatram

 

According to Taking And Enforcing Guarantees In England And Wales by Andrew Evans

Death of a Guarantor

 

The guarantor’s death itself will not automatically terminate the guarantee. In the absence of an express contractual provision to the contrary, the guarantee will automatically be revoked (i.e. the guarantee will cease to be continuing in respect of the future liabilities of the principal debtor) once the recipient is told of the guarantor’s death. Where the guarantee contains an express provision to the contrary, the question is, "could the guarantor have revoked the guarantee by giving notice while he was alive?". If answered affirmatively, the guarantor’s personal representatives can similarly revoke the guarantee; if answered negatively, the personal representatives cannot terminate the guarantee by notice. It is usual, however, to permit termination by notice from the guarantor or his personal representatives, which has the effect of determining the guarantee so that while the guarantor’s personal representatives remain liable for existing debts, they will not be liable for sums advanced in the future.

my emphasis