joint mortgage question

tobyaubergine

hello, i have a joint mortgage with my mother and am trying to find out what will happen to the mortgage after she dies?
would it just continue in my name as it is a joint mortgage or would the bank call it and and then id have to reapply for my own mortgage.
the mortgage is for 140000 and the property is valued at 400000.

dimbo61

Has your mum and yourself got life insurance to cover the mortgage if either of you die?
What is your income and would it cover the mortgage ( this depends on your lender and your LTV)

tobyaubergine

hiya, i have life insurance but because of mums age she couldnt get any that was worth having ie not a decreasing value one. i believe that myself and my partner and my brother, we all live here, could cover it.

dimbo61

Has your Mum made out a will ?

tobyaubergine

yes we are just in the process of organising all of this, hence the question.
the will leaves the house to me and my brother in a discretionary trust ie we both get to stay living in it until we both decide otherwise, as long as the mortgage is paid!!!
mums estate comprises mainly of the house with approx. 25000 in cash.

getmore4less

If you are both on the mortgage how is the house owned?

Joint tenants or tenants in common(what shares)?

Money_Yoda

If the house is already owned in your name, as well as your mothers, then she will only be able to leave her share to your brother in the Trust - you can only gift what you own.

This may cause issue with the mortgage lender as many want the mortgage in the same names as the property ownership - but it's more a paperwork exercise at their end to sort it out.

As to your concern of calling in the loan - no they can't. A mortgage is Jointly and Severably Liable, so you both owe 100% of the balance. This basically means that as long as the mortgage is paid by you they can't force you to sell or recall the loan.

Hope that all helps!?!