elderly father took out large mortgage before dying

JasonGrim

Hi

My father died at 69 leaving a house worth possibly £400k. I hadn't been in touch with him for some years and was surprised that two years previously, when he was 67 and probably suffering with dementia, he took out a £200k mortgage which fell into arrears when he was hospitalised a year before he died. I've been granted probate and he doesn't have any other assets and I'm too poor to get legal representation without first selling the house.

The mortgage company are demanding I sell the house to pay their mortgage, but I can't understand how they would have given him the money without life insurance. I asked them for a copy of the agreement and any insurance and so far they are saying that there is no insurance. I'm waiting for a copy of the agreement and details of the conveyencer. They're being a bit slow in providing this info which is making me suspicious.

Does anyone know what the rules are covering giving mortgages to the elderly and what my rights are in respect of repossession proceedings if I can't sell up in time? There are building problems with the house which might prevent it being sold straightaway.

Thanks,

Jason

opinions4u

There is no requirement to insist on life cover when granting a mortgage, and at 67 premiums may well have been excessive anyway.

What happened to the £200k? What was it used for?

At the end of the day, you are where you are and mortgage payments are payable by the estate. The sooner you can sell, the better.

The executors should try to avoid repossession, because that could mean those due to inherit end up with significantly less than they would otherwise receive.

getmore4less

Did you chase down where the money has gone.

You probably should have done this as part of the financial analysis you need to go back 7 years looking for gifts.

Because if it was gifted to someone and the house is worth £400k and no other debts there could be IHT implications.

Was there a will, any other benifitiaries?

dunstonh

I can't understand how they would have given him the money without life insurance.

hasnt been a requirement since the mid 90s.

Not everyone needs life assurance. So, forcing those that don't would be wrong. It doesnt sound like your father needed life assurance as there appears to be no financial dependants.

Does anyone know what the rules are covering giving mortgages to the elderly

There isnt any rules for different age groups and with respect, age 67 is not elderly.

I'm sorry for your loss but you are barking up the wrong tree here.

What happened to the money he borrowed?

Was it a mortgage or was it equity release?

herbiesjp

JasonGrim wrote: »

I've been granted probate and he doesn't have any other assets and I'm too poor to get legal representation without first selling the house.


Thanks,

Jason

Do you have buildings or contents insurance on your place?

If so, there may be legal expenses cover included - just a thought.

Otherwise a trip down to the CAB could be really helpful.

Good luck.

dkmax_2

Under what circumstances did a man of 67 obtain a mortgage of £200k? What income did he have? What were the terms ? Is this really an equity release scheme? I would want to satisfy myself that this was entirely above board. I'd recommend legal advice - initial consultations can be free.

As the others have said, there is no requirement to have insurance although there is normally a requirement to have a repayment mechanism - which is selling the house in the case of equity release etc. Where did the money go?

THE-WIFE_3

When I was executor to my friends estate I had to have the house valued by an estate agent. This enabled me to submit a figure for probate. I am surprised that you have not managed to find the full details of his bank account/s to find out where the money has gone. You should be able to get this from his bank who would have set up an executor account to enable you to settle any outstanding amount for utilities, council tax etc and receive any outstanding pension or other payments. You have the power to do this if the grant of probate is in your name. Please keep full records as you may finally have to deal with a solicitor to finalise any tax payments.

Please correct me if the law has changed in the last ten years or so.

toddle2u

I was under the impression thatyou claim for mis-selling of mortgages if the term ran past retirement age under the FSA guidleines?

dunstonh

toddle2u wrote: »

I was under the impression thatyou claim for mis-selling of mortgages if the term ran past retirement age under the FSA guidleines?

There is no such guideline.

If bought through an adviser, the adviser should ensure that affordability exists post retirement. If it does, the borrowing can be recommended.

If no adviser is involved and no advice is sought then its just subject to lending criteria.

Assuming this is a mortgage and not equity release, then at 67, one would assume that he was already retired and the lender based their decision to lend on his retirement income.

If its equity release, then of course, income doesnt matter.