Property Inheritance Question

cherryredcutie

Hi all,

I wonder if you can give me some advice on this. If it says in the Last Will that:

"I give to (name) all my share and interest in my property absolutely freed and discharged from all sums secured thereon by way of mortgage or otherwise at my death and I direct that such sums and all interest in respect thereof shall be paid out of my residural estate."

Now what would happen if I was the beneficiary but there was not enough residural estate to pay of the mortgage that is still on the house, would I still be the owner of the house or would it have to be sold to pay of the mortgage?

Thanks for your help!

NAR

Surely mortgage company will have mortgage secured against the property? Otherwise everyone would be at it!!

opinions4u

Such a statement (if I have interpreted it correctly) would invalidate the whole will as it isn't legally enforceable.

The mortgage would have to be discharged from the total value of the estate, including that of the property.

If the total value of the estate, including the property, was not enough to clear the mortgage then the lender would have to write off any shortfall.

timmmers

Isn't there insurance? Lender dies...mortgage is covered?

t

opinions4u

timmmers wrote: »

Isn't there insurance? Lender dies...mortgage is covered?

Blimey, I know the banking crisis has been bad, but wow! ...

herbiesjp

The executors could raise teh funds elsewhere to clear any shortfall - and therefore avoid having to sell the property, but the mortgage would definitely have to be cleared.

If life cover is held, make sure it is put in trust for the beneficiaries of the estate, as this way they will get the proceeds straight away, without adding to the deceased's estate, which will mean being able to clear the mortgage debt straight away