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Joint Owner, Single Mortgage, what will happen after death
goldmask
Posts: 67 Forumite
This question must have been asked before. So please point me to the right thread if a detailed answer was available.
My wife and I are joint tenants on the title deed of our property. But I am the only one on the mortgage. If I die, is it true that my wife will have to sell if she cannot afford a mortgage on her own, but if we have a joint mortgage, she will be able to keep the same mortgage even if she might not qualify for the mortgage product on her own?
My wife and I are joint tenants on the title deed of our property. But I am the only one on the mortgage. If I die, is it true that my wife will have to sell if she cannot afford a mortgage on her own, but if we have a joint mortgage, she will be able to keep the same mortgage even if she might not qualify for the mortgage product on her own?
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Comments
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Yes.
There are not many lenders who will accept this arrangement at the outset as it causes problems in the event of default and repossession.
The asset will pass to the joint owner in the event of death of a joint tenant and the survivor will have to arrange for repayment of the mortgage as best they can.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
In this scenario I'd suggest having sufficient life insurance to pay off the mortgage.I'm a qualified accountant but please make sure you get expert advice as any opinion is made in a private capacity.
"A goal without a plan is just a wish" Antoine de Saint-Exupery
Mortgage overpay 2012: £10,815; 2013: £27,562
Mortgage start £264k, now £232k0 -
Simple solution as suggested by Camel ...
Effect a term assurance policy in at least your name for at least the mge amount (ideally though joint policy if affordable, with extra pprovision for otherr debts, loss of your income or childcare on wife's passing (if there are issue, and/or your wife doesn't work), plus funeral costs, etc.
If the policy is written in your sole name, it should be written under trust for the benefit of your wife, if a joint policy is effected this step isn't necessary.
Upon your death the policy proceeds repay the os mge, with the property bequested to your wife. If you effected a joint policy, this would be on 1st death, which if your wife, would allow you to repay the os mge to reduce the financial pressure that may follow her passing.
As always, consulting your IFA and Solicitor, re the regular assessment and updating of life, family and income protection requirements, and estate and Will planning should take place as life happily skips along !
Hope this helps
Holly0 -
This is why people take out insurance to protect their loved ones.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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