Morgaged House / No Will - Who Gets it?

mrobsessed

Hi All,

I've been advised to get a will as currently I have little control of my assets going where I'd like when I die. I have no spouse, partner or children and both my parents and my sister are still alive.

I'm particularly concerned about my house as I have a substantial amount of positive equity even though it is still mortgaged (I'm about half way through a 25 year term).

What happens to the house if I die? Is it sold off by the mortgage company to pay the remainder of the mortgage and the remainder then given to my inheritors (I assume my parents) or do they just take it all? What duties would be taken from the money raised?

Any Advice would be appreciated.
Mr O

RAS

Depends.............

Your parents would inherit the house under intestacy rules.

Normal procedure would be for one or both to adminster the estate. They could try and negoitate a mortgage holiday and sell the house ASAP.

Only if any of your surviving relatives refused to sort out the situation or make any payments towards the mortgage would the mortgage provider look at repossession.

getmore4less

What do you want to happen? decide that and put a will and anything else needed to make that happen.

The person that administors your estate ultimately decides and can do pretty much what they want as long as no one complains.
(so pick executors you trust or the benifitiaries)

There are strict rules for debts which does limit some actions and is one source of complaint if not done right.
(mortgage is a secured debt so comes top)

A will can stiputale actions and distribution to benifitiaries what is left(allthough that can be changed)

Intestate rules define benifitiaries in the absence of a will.


eg You could stipulate in the will that all assets are sold debts(mortgage) paid

the executors and benifitiaries could decide to do something different like pay off the debts and keep the house.

what do you want?