Help! Mortgage transfer after death

Berkerk

My wife sadly passed away but was Tenant in Common with a friend. Half of the deed of the property is now in my name but the mortgage is now legally the sole responsibility of my wifes friend. I am the only one living in the house and would like to continue to do so, I would be considered a first time buyer. The house is in negative equity and the mortgage is still 3 years within it's 5 year fixed rate. I have spoken to the mortgage lender and they say that for me to go on the mortgage in my wifes place, both me and her friend will have to have credit checks, which is now a problem for her friend! Has anyone got any suggestions?!?

DVardysShadow

You need legal advice. In your position I would investigate keeping your late wife's estate going and just pay the mortgage from your pocket via the estate - although if the estate is wound up, it would be too late.

This case is slightly different from the case of one partner leaving a house and the other taking on the whole mortgage or a new partner taking over. The mortgage is on the house and unless they can foreclose in the event of death of a mortgagor, it could be that if you just carry on paying, there is not much the lender could do or might want to do.

I would suggest that you pay your share to the lender direct, particularly as the other borrower appears to be in difficulties and you make sure that she pays her share - you really need to get something in place to define responsibilities and what happens if you sell etc.

Berkerk

Thank you for you your time and reply. I did not even realise it was possible to continue the estate, I was about to instruct someone to proceed with administering the estate tomorrow. They hadn't even mentioned it as a possibility, at a meeting I had earlier in the week!