Not on the mortgage

ianpMK

CLAPTON wrote: »

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

Yep spoke to lender, they would be happy with it.....he would not for some odd reason. After all it's his daughter and grandchildren, so I see no issues with it. but then again not my house.

CLAPTON

back to the main question

are there any specific reasons why you can't get a mortgage for 40k in the event of your FIL death

SuzieSue

ianpMK wrote: »

Yep spoke to lender, they would be happy with it.....he would not for some odd reason. After all it's his daughter and grandchildren, so I see no issues with it. but then again not my house.

I assume your lender would also require your wife to own part of the property as well? I assume that is why your FIL is unhappy?

ianpMK

SuzieSue wrote: »

I assume your lender would also require your wife to own part of the property as well? I assume that is why your FIL is unhappy?

I beleive this to be the case....

CLAPTON,
(back to the main question -are there any specific reasons why you can't get a mortgage for 40k in the event of your FIL death)
The only reason I forsee is that I may still be in the position of just break even in my self employed business. If I don't make enough profit, then who would lend money?

getmore4less

ianpMK wrote: »

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!!

Are you sure your going to inherit the house?

KarenBB

Maybe your FIL is concerned that if your wife is named on the mortgage she would have some control over the property and he doesn't want that. I'm assuiming he's not a young man and has had an illness. I wonder if he'd consider your wife being added to the mortgage but not being added to the deeds. I know you can be named on the mortgage but not the ddeds, that would mean that although she is responsible for the moprtgage she is not automatically be entitled to the property, it would have to be passed to her in his will. Your FIL might be more comfortable knowing he still has control over the property. It might be worth speaking to a mortgage advisor about this option if you think your FIL might be agreeable to it.

SuzieSue

KarenBB wrote: »

Maybe your FIL is concerned that if your wife is named on the mortgage she would have some control over the property and he doesn't want that. I'm assuiming he's not a young man and has had an illness. I wonder if he'd consider your wife being added to the mortgage but not being added to the deeds. I know you can be named on the mortgage but not the ddeds, that would mean that although she is responsible for the moprtgage she is not automatically be entitled to the property, it would have to be passed to her in his will. Your FIL might be more comfortable knowing he still has control over the property. It might be worth speaking to a mortgage advisor about this option if you think your FIL might be agreeable to it.

That is what I was wondering. I haven't heard of this. Do you have experience of it?

KarenBB

The mortgage for our house is just in OH's name (we were relocating and he earnt enough for the mortgage so not worth messing with paperwork to have me on it too). The mortgage is with nationwide and some years ago he spoke to them about getting my name put on the deeds but not the mortgage. They said to go on the deeds you had to be on the mortgage but you could be named on the mortgage but not on the deeds which is why I put the suggestion forward.

boliston

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

In the event of the FIL dying I would have thought there would still be an element of "security of tenure" for your family and I don't think you could be made instantly homeless.

I assume that your wife will be the sole beneficiary of FIL's will?

I'm not totally sure what inheritance taxes would be payable on the estate or if there are other assets that would need to be taken into consideration. I would have thought that once the probate has been sorted out you would then be in a better position to work out what the mortgage options will be. It's very difficult to predict for something in the future in a lot of detail.

SuzieSue

KarenBB wrote: »

The mortgage for our house is just in OH's name (we were relocating and he earnt enough for the mortgage so not worth messing with paperwork to have me on it too). The mortgage is with nationwide and some years ago he spoke to them about getting my name put on the deeds but not the mortgage. They said to go on the deeds you had to be on the mortgage but you could be named on the mortgage but not on the deeds which is why I put the suggestion forward.

Thanks. So perhaps the solution is for the OP to explain to his FIL that this is possible and that it won't affect his ownership of the house (although the OP's wife needs to be confident that she will inherit the house as she will be liable for the mortgage after his death).