BTL Mortgages and death

D3lphine3

She was Manic Depressive, and the last life insurance policy renewal we can find is dated June 2011 but we have no yet found out whether this was taken up. It does have suicide as an exclusion in the terms and conditions.

The actual circumstances behind her death are being investigated, she was in a mental institution when death occurred, but I think any insurance company would class it as suicide.

All the properties are supporting themselves very well at the moment, all rented, with 4 more soon to be rentable. As well as her own house that could also be rented. This would take the income to approx 65k per annum minus the 12k repayments. These are only her properties not all in the business.

I am a part qualified accountant, so I have some knowledge but not to this extent. I do know an accountant that would able to help me if required.

Approx guess would be mortgages around 400k, property values about 600k.

I think Inheritance tax may come into this.

She has got a 8k personal loan, 5k on credit card, 5k Overdraft.

She doesn't have much in the way assets other than business and several cars.

I'm not totally sure on all personal debts at the moment, due to her having been very reckless with money due to her mental state in the last few years.

We tried to control things as much as we could but she had turned against us and refused to let us do anything. We were in the process of getting a Order of Protection over her finances when she died.

Thrugelmir

You have my deepest sympathy. As the loss of a loved one. In itself is enough to cope with.

From what you've written there's some considerable time required to unravel the situation. Far too complex to resolve on this forum.

All I would say is keep it simple. As from the ashes it may be possible to retain a far smaller portfolio of property mortgage free. On which to
build a far more stable business to grow from. Properly structured as well.

D3lphine3

Thanks, this is the 2nd death in the family in a short time. I lost my nan, on my mums side, just prior to Christmas.

Things are never simple in my life it seems!

We do know that due to her dying without a will nothing can be done with the estate until 6 months have passed to allow any claimants to make themselves known.

We've put so much into the business it fills us with dread that we maybe left with nothing!

We have always used the same Mortgage Advisor and Solicitors from when the business started in 2003.

Now it's just me and my step dad a properly planned business will be run.