Not on the mortgage

ianpMK

I was wondering if anyone could advise please.
Myself and my wife and the kids live with my father in law. There is a small mortgage on the property that was taken out to extend the property when we moved in.

The mortgage is his name only. There is no insurance on the mortgage, so th mortgage would not be cleared on death.

We would like to know where as a family we stand.

What would happen on his death?

As a self employed person, I have no chance of obtaning a mortgage so would not be able to re-mortgage for the amount owing on death.

What would the process be?

Would we be able to continue to contniue living in the house?
Would we be able to take over the payments of the mortgage?
What would the senarios be?

Thanks in advance

Rikki

Why not take out a small life insurance policy for your father?

dasilva_2

ianpMK wrote: »

I was wondering if anyone could advise please.
Myself and my wife and the kids live with my father in law. There is a small mortgage on the property that was taken out to extend the property when we moved in.

The mortgage is his name only. There is no insurance on the mortgage, so th mortgage would not be cleared on death.

We would like to know where as a family we stand.

What would happen on his death?

As a self employed person, I have no chance of obtaning a mortgage so would not be able to re-mortgage for the amount owing on death.

What would the process be?

Would we be able to continue to contniue living in the house?
Would we be able to take over the payments of the mortgage?
What would the senarios be?

Thanks in advance

Presumably take out some life insurance for your father in Law that would cover him and any inheritance tax liability, if applicable.
If inhertitance tax would be applicable, then get some advise.
(and make sure he doesn't leave the house to cats protection)

ianpMK

The option of an insurance would be very unllikly as of his age and illnesses.
We were advised today that my wife could be added to the mortgage, this would incur a small fee to update deeds etc. He was not happy with that. So this concerns us that we couold end up on the street with no options.

Rikki

ianpMK wrote: »

The option of an insurance would be very unllikly as of his age and illnesses.
We were advised today that my wife could be added to the mortgage, this would incur a small fee to update deeds etc. He was not happy with that. So this concerns us that we couold end up on the street with no options.

It is still an option I would explore.

If he seems unhappy about putting your wifes name on the mortgage and deeds makes me wonder what he intends to happen to the house on his death. Have you asked him and explain the complications with him having the mortgage in his sole name in the event of his death.

CLAPTON

how much is the house worth?
how much is the mortgage for?
does he have any other debts / CC etc


self employed people can get mortgages especially if it's for a relatively small sum in relation to the value of the property

ianpMK

Hi Rikki,
yes we are in the process (beleive it or not) of writing a senarios paper.

Senario 1) If my wife is on the mortgage then we will be able to continue living here and paying the very small mortgage.

Senario 2) if my wife is not on the mortgage then the house will have to be sold, after probate to clear the mortgage, we will then have the funds (unless something changes out of our conntrol) from the house to buy elsewhere (not really what we want to do) with the possibility of having to try and get a mortgage as a self employed person to make a move viable.

So those are the 2 senarios that we can think off. unless you know more!!

wodgerdodger

Have I missed something? Why do you think self employment would make you ineligible? Provided you have a good track record and an increasing or at least stable income (net profit) over the last 2/3 years should not rule you out.
Not having formal accounts also does not bar you. Provided you have submitted self assesments to Inland revenue which have been accepted by them then these would be accepatable to most Lenders.

You state it is a small mortgage therefore presumably also a low LTV loan is being considered. Could you not be added to the mortgage along with your father if he was willing to do so.He was happy to raise the loan to accomodate the family so presume he would not object.

Is there any other reason you feel you could not get a mortgage such as credit history?

ianpMK

Clapton
Value Aprox £280k
mortgage £40k
No other debts that e are aware of

CLAPTON

who said your wife could be put on the mortgage?

depending upon your income etc I see no reason why you wouldn't be able to get a mortgage for that amount

ianpMK

wodgerdodger wrote: »

Have I missed something? Why do you think self employment would make you ineligible? Provided you have a good track record and an increasing or at least stable income (net profit) over the last 2/3 years should not rule you out.
Not having formal accounts also does not bar you. Provided you have submitted self assesments to Inland revenue which have been accepted by them then these would be accepatable to most Lenders.

You state it is a small mortgage therefore presumably also a low LTV loan is being considered. Could you not be added to the mortgage along with your father if he was willing to do so.He was happy to raise the loan to accomodate the family so presume he would not object.

Is there any other reason you feel you could not get a mortgage such as credit history?

My father in law.... not an option at all in any way for me to go on mortgage.
Self employed for 3 years, just breaking even. Was made redundant so still paying off previous debts...