Father in Law Aged 77 £50k Mortgage Interest Only?

philng

I am the executor of my father in laws estate a couple of years ago due to financial hardship he had to agree to switch to interest only from repayment. The current £50000 debt will still be there upon his death & in his will he states that one of his sons (aged 51) can remain in the property for 6 months after his debt rent free.
There is also a further £21000 debt managed via a debt agency on minimal payments.
What will happen on his death? Will the mortgage co request immediate payment & who pays the mortgage payments until sale of property? There are no cash assests.
What is the impact of the 6 month request in the will?

Thrugelmir

The estate is responsible for settling any debts and liabilities. So interest will continue to accrue until such time as the debt is discharged.

Given that property often takes time to sell (i.e. to completion). Six months may pass very quickly.

dunstonh

Agree with Thrugelmir. The lender will expect the property to be put on the market and immediate six months notice given to the son. These things will likely drag on past 6 months and the lender wont mind too much as long a the estate continues to pay the mortgage and doesnt drag it on for an unreasonable period.

Whilst the Will says the son can live there for 6 months, it is not binding on the executor of the estate if there is not sufficient cash to pay the debts and assets need to be sold to repay the debts. The executor has a legal duty to sell the asset at the best price within reasonable time to clear the debt. So, it would only be a potential issue if a decent price was obtained quickly and it was say a cash buyer looking for a quick purchase.

getmore4less

6 month will be no problem easy to take that long.

collecting info,

submitting tax forms if estate not excepted

applying for probate

can use up a fair bit/all of that with no come back.


What I would be concernded about is the will, what does it say about utilities and repairs while the son is living there, rent free is only part of the story.

How much is the house worth?

Who are the benifitiaries

How much are you getting for doing the job( you can't get paid but can have a bequest or part of the residual.


It is often critical to review the net estate and see if this could be a lot of bother for no real benifit.

The other issue could be that if the son allready lives there ther may be a claim to continue.

is it likley that someone family like the son want to buy the house?

What are the current terms of the mortgge