mortgage debt and death

vb77

Wondered if anyone had any ideas on this?
My mortgage is in my father and my joint names, but it is only my name on the deeds. Sadly he is very ill and is not going to get better. I was wondering what will happen to the debt when he does die? Will any of it come out of his estate? Or will it become entirely my responsibility?
Thanks

0james0

The debt will pass to you as the debt is in joint names.

You could however pay the debt off from other assets that have been passed to you.

If the deeds are in your name it means you own the house, but you are jointly liable for the mortgage as this is in both.

I would make sure you see an IFA who specialises in inheritance tax now though to see how they can help.

dzug1

What sort of mortgage do you have - is there any life insurance with it that would repay all or half of it on death?

The debt will take precedence over most others in the estate.

koexelek

vb77 wrote: »

Wondered if anyone had any ideas on this?
My mortgage is in my father and my joint names, but it is only my name on the deeds.

Is he just a guarantor then ?
With virtually all mortgages the names on the mortgage and the title deeds need to be the same.

Either way, it looks like you will inherit the full debt though

vb77

Thanks
He isn't a guarantor, the debt is in his name.
Sounds like I'll get the debt then.
Unfortunately since this arangement our relationship has become rocky to say the least, so I can't talk to him about money (get accused of being money grabbing ) and I don't think much if any inheritance will be coming my way.

getmore4less

Whats the place worth?

You may be in a catch 22 if the place is worth more than the mortgage.

If you try to get 1/2 the debt paid from the estate they could argue that 1/2 the house is part of the estate and you could end up owing them money if the LTV is less than 50%.

Once the debt is repaid the estate could insist on you buying your dads half especialy if it has been willed elsewhere so you could end up owing more.

It will be worth checking this out properly(get independant advice) so you know where you stand and can prepare.

What agreement was made when you set this up? I guess you did not take advice and get anything in writing at the time.