inheriting a mortgaged property - what to do

Rocket

scenario:
Property with mortgage owed as of todays date £45600.00
mortgage was interest only - as well as monthly payments that were made there was also overpayments:
Is it best for the overpayment amount to come off the amount owed or the interest?
5 years ago the husband of the couple died, endowment which would have covered mortgage - was partly spent by now deceased wife.
There is at least £10000.00 to go towards paying off but then still an amount due.
I already have a mortgage but plan to let out property for approx £1200.00 per month, revert all of mortgage to repayment and payoff amount owed in hopefully reasonably short space of time.
Any advice would be greatly appreciated also if anyone can tell me any pitfulls to look out for.
thanks in advance

bengalknights

Wouldnt the estate of the deceased have to pay off the mortgage first?

System

If there is insufficient money in the rest of the estate to pay off the mortgage then the house would need to be sold.

Debts MUST be serviced before bequests can be considered.

Rocket

all that was left was approx £18000.00 in cash/isa/insurance

out of this funeral costs are to be met approx £5500.00

Can I not submit what is left and then take over the mortgage as stated earlier or does a lender force you to sell even though you are offering to continue payments?

laurel7172

No. You can't inherit mortgages-the bank loaned the money to somebody else and has the right to decide whether it wants to lend to YOU or not.

It might be possible for the executors to sell you the house (it has to be transferred to your name anyway) and for you to fund the shortfall with a buy to let mortgage. But I'm sure there are lots of potential pitfalls that somebody else will see in that...especially if there are other beneficiaries.

Rocket

sorry to all who have kindly taken time to reply so far.

Should have given more details the couple in question are my Mother and Father.
No other surviving family members, I was their only child and my Mother made a will making me executor.

dimbo61

sorry to hear you have now lost dad and mum but you need to sort out clearing the current mortgage by taking out a buy to let mortgage and repay the debt plus do any work that needs doing in order to rent property.
go see a "whole of market mortgage broker" and get an accountant to make best use of property and your plans on being a landlord.

magpiecottage

As others have said, the mortgage must be repaid on death. That is where the "mort" part of "mortgage" comes from - it has the same root as mortuary.

In theory, you could buy the property and, if you are the only beneficiary under the will it might be possible to do so at a discount. However, you would need to find sufficient funds, if necessary taking a loan of your own, to do so.