wills

halabaloo

Does anyone know if you own a buy to let property with more than one person and you have left your percentage to someone else and you die can you still keep that property (with a Mortgage on it) if the person who has been left a share has agreed to it. Or does it have to be sold to pay the Mortgage off and the profit seperated?

Also if you have your own property with a Joint Mortgage (tenants in common) and one person dies does the mortgage have to be paid off or can you continue to pay it without having to prove earnings are sufficient? As I know Mortgage companies will not take buy to let income into consideration in case the property becomes vacant.

Savvy_Sue

halabaloo wrote: »

Does anyone know if you own a buy to let property with more than one person and you have left your percentage to someone else and you die can you still keep that property (with a Mortgage on it) if the person who has been left a share has agreed to it. Or does it have to be sold to pay the Mortgage off and the profit seperated?

Also if you have your own property with a Joint Mortgage (tenants in common) and one person dies does the mortgage have to be paid off or can you continue to pay it without having to prove earnings are sufficient? As I know Mortgage companies will not take buy to let income into consideration in case the property becomes vacant.

In both cases, would you not have basic life insurance in place which would cover the whole of the outstanding mortgage?

halabaloo

No you don't need life insurance to cover Buy to let houses, if we die the rent still gets paid, and the property can be sold to pay the Mortgage. We do have life cover for most of our own property but we switched to an interest only mortgage but our life cover is on a decreasing one which we cannot change due to my family history or Heart problems they want to increase 3 fold, so we took out seperate insurance but we cant keep doing that each year it decreases especially when there is equity in the BTL's but we obviously wouldn't want to sell all at once if something happened to the other, finding it hard to get advise the will group said to ask the Finacial adviser and he has passed us to another will company, we do already have Wills in place, but not entirely sure they are to our benefit