remortgaging following death

simpywimpy

Thanks to previous advice I now know I have to remortgage the home left to me by my parents.

There is around 33,000 outstanding on an excellent rate of 0.5% which I am unlikely to keep hold of with Santander.

My questions is, do I pay the mortgage off first, then remortgage to get my money back?

The house is still in the joint names of my parents for whom I now have probate but would it make it more difficult to mortgage now rather than paying it off first?

holly_hobby

As advised in your other thread, the executor/administrator has to ensure that you settle the mge (in addition to other debts - capital allowing ! ), before probate can be completed.

A mortgaged property can not be left to continue under the name(s) of deceased individuals - and must be redeemed from the estate, either by sale to a 3rd party, you purchase from the estate for cash, or you purchase from the estate using a mortgage - at which point the property ownership and title will be transferred to yourself.

If you repay the current mge lender with cash, you will normally have to own for 6 mths before you could remortgage - and the reason for remortgage (alongside your status being suitable), would also have to be acceptable.

If you don't have cash to settle the current mge and obtain title, then you will have to obtain a mge, which will effectively repay the current lender, and permit tsf of title to you.

Either way, the house can not be release to you before probate is completed.

Perhaps a Probate Solicitor could be engaged to guide you on the formalities and legalities of probate and the administration of an estate.

Hope this helps

Holly

simpywimpy

Thanks Holly. I think I will just go for the remortgage then. Im executor and sole ben. for the estate of my parents. My mum died 5yrs ago now but we have only just sent in the will for probate on dads death.

I realised from the other thread that Im going to have to deal with the outstanding mortgage (thanks to dud solicitor ) and have the money to settle it but wasnt sure whether to do that or just go straight for remortgage in which case, I can also release further funds.

holly_hobby

It will only be classed as an remortgage IF you already hold legal title and ownership i.e after probate has been settled (parents mge with Santander paid off), and LR advised of the TOE.

A good probate solicitor will help if need a hand to hold x

Good luck .... and I'm not sure if I've already said this, but I am so very sorry for your loss, and the complexities of sorting out an estate at what will already be an upsetting and unsettling time .... always remember lots of help and friends here for you to speak to if you have any issues on this .... Holly xxx