Death of spouse who owns house/mortgage

[gprit]

My wife died just over a year ago.

 

The house we live in was bought in her name only, and the mortgage is in her name only.

 

I obtained Probate and I am the beneficiary of all assets and debts.

 

Last week I phoned up the lender - assuming it would simply be a case of switching the deeds and mortgage to my name and continuing payments.

 

I was concerned when the person said that in those situations they usually required the mortgage to be repaid

- which i couldn't do without selling the house - and I would have no-where to live.

 

Despite my late wife owning the house/mortgage, ALL monthly payments have been from MY account and have never been missed.

 

Anyone have any advice on this?

 

Thanks

[Lea_HTH]

Unfortunately mortgages aren't transferable, so you will need to take out a mortgage in your own name in order to repay the mortgage in your deceased wife's name.

 

You have legitimately inherited the house, but there is an outstanding debt (the mortgage) which has to be repaid - as above, you can do that by getting a mortgage in your name if you meet a lender's borrowing criteria. I am afraid that having made the payments for however long won't be seen as relevant.

 

Are you in a position to obtain a mortgage? The first place to approach would be your own bank. Try to avoid sub-prime lenders if at all possible.

[citizenB]

This might be a stupid question, but have you checked all paperwork to ensure that your wife hadnt taken out a "reducing sum insurance" that would cover the outstanding balance of the mortgage in the event of her death ! It would be a relatively low value monthly premium.

[gprit]

I am afraid I am unlikely to meet the criteria for obtaining a mortgage elsewhere...I am now retired and don't have a great credit profile. I cannot believe that a lender can evict me in such a situation in order to sell the house and repay the mortgage, whilst I can continue to pay it without any problem.

[count orlok]

If your spouse had a repayment mortgage she would have had to have life insurance that would pay off the mortgage on her death. If she had an endowmwnt mortgage the endowment policy would pay off the mortgage on her death if she died before the end of the term.

[gprit]

It is an interest only mortgage, planned to be paid off from other sources in 2016.

[Lea_HTH]

If you have a policy for repayment of the mortgage, I would suggest that there is a clause in there relating to death of the beneficiary, so check that out first and then discuss the issue further with the mortgagee.

 

You may also want to check your position with the mortgage rescue scheme - as you are a pensioner they may be able to offer some assistance, and if nothing else, may be able to provide some guidance as to how to negotiate with the mortgagee.

[gprit]

Thanks...there is NO 'due-on-sale' clause in the mortgage. Anyone know the actual LEGAL position of this situation?

[Ell-enn]

I believe Lea_HTH has given you the legal position, you should take her advice - she does know what she is talking about. Alternatively you could get an appointment with a solicitor who offers a free 1 hour consultation - lots of law firms do that.

[DaveHam]

Sorry to hear about your situation and appreciate this must be a very stressful time.

 

Unfortunately as stated in the replies above the lender is completely within it's rights to take action to recover the outstanding mortgage. I've seen a handful of clients in exactly the same situation, obviously everyones situation is unique however it's been possible to find a sensible solution for them despite their age and credit status.

 

You should speak to a local reputable broker that will at least give you an overview of the potential solutions from a finance perspective. This doesn't mean to say securing finance is the only viable option however is at least an avenue you need to explore.

 

Hope this helps!!

[lookinforinfo]

My condolences on your bereavement.

Do you know what the "other sources" are that were designed to clear the mortgage in 2016? It would seem very strange that there was no insurance policy taken out at the start of the

mortgage from the B/Soc's point of view if not your wife's.

[gprit]

Posted elsewher but was told to start new thread, so......our interest only mortgage with J P Morgan is due to expire early next year.

The repayment vehicle is that I have a house in France that will more than repay the mortgage.

(all payments up to date, never missed or been late with any).

 

My concern is what happens if the house in France has not sold by then (the property market there is pretty dead)?

[citizenB]

Do you currently have the house in France up for sale ?

[gprit]

Yes...but the market is pretty dead right now.......the equity is more than enough to cover the UK mortgage when eventually sold.

[BazzaS]

Can you mortgage the house in France for the sum due in England, if it doesn't sell in time?

Do they do interest only mortgages?

 

Sure, you'll pay interest until you can sell the house but it will buy you time?

[gprit]

Cannot do that, and as of retirment age cannot re-mortgage in the Uk either.

[theoldrouge]

uk house residential mortgage?

 

whats your uk loan to value as a percentage?

[gprit]

Fully mortgaged - although I could raise 25% of the value from savings.

 

re-mortgage is simpy not feasible - I have talked to many about doing that, this is why I am asking what the mortgagor might do when the term expires.

 

The French property has much much more equity than is needed to repay the UK mortgage, but cannot be unlocked - French banks etc don't allow. UK companies don't touch French properties, especially now that I am retired.

[theoldrouge]

fca requirements, read before discussing with your lender

 

http://www.fca.org.uk/your-fca/documents/finalised-guidance/fg13-07

[gprit]

Many thanks for that.

[gprit]

Property was in my late wife's name, mortgage with J P Morgan.

 

 

When she died they would not transfer mortgage to me as 'they were no longer lending'.

 

 

I continued to pay the monthly interest as Executor - never late or missed payment through whole term.

Mortgage is £68,000, value £70,000, funds held £28,000.

 

The mortgage term has now expired and they threaten possession if not repaid within one month.

 

I cannot get a remortgage at my age (68) and there IS a repayment vehicle in place

- a large house in France that I am selling

- but obviously not sold yet as the market there is depressed.

 

 

More than enough to repay.

 

Any advice?

[Peterbard]

Hi

 

What is the approx value of your other property ?

[gprit]

Value €600,000 with mortgage on it of €250,000 but not possible to release equity as the mortgage is with French Bank and they don' do that(!)

[Peterbard]

Value €600,000 with mortgage on it of €250,000 but not possible to release equity as the mortgage is with French Bank and they don' do that(!)

 

Ok sorry obviously you have looked into this. What about equitable assignment via a charge, or is this also not permitted ?

[gprit]

Afraid not in France.....they just don't do the same things as available in UK.