wife dies, buy to let forclosure

homers1

Help or advise please,
My wife died earlier this year and she had a buy to let mortgage with Clydesdale Bank in her name only, this property has been left to me and my two daughters, we have three flats rented out and income covers mortgage easily. there was no life cover in the event of her death in place.
My question is can Clydesdale force me to sell even if i continue to make all payments on the mortgage. For us to sell would take some considerable time as tenants have 3 months notice periods. What sort of time period are Clydesdale going to require b4 they foreclose on us.
I have tried to re-mortgage with no luck as I am newly self employed and do not have three years accounts to show.
Is it possible the mortgage could be put in my name?
I wish I had not told them she had died and just carried on I don't think they would have ever known if I kept payments up.

Your thoughts would be appropriated

chewback

If it is a BTL mortgage you can use The Mortgage Works or BM Solutions as they do not require a minimum income level.

Dave_Ham

Depending upon the specifics of your case, income is not necessarily a big barrier to achieving buy to let finance.

The structure of the flats and detail may require more thought.

All the best

holly_hobby

Firstly I am so sorry for your loss, and hope that you and your family are slowly making your way xxx

Moving to the property.

Yes the mortgagor was your wife, upon her death all debts must be repaid from her estate, and all contractual agreements effectively end, which will be written into the mge t&cs (ie debt is repayable on death (standard format) ).

If the lender have refused to effectively tsf the mge into your name, then you will need to either sell the property or remortgage it, in order to repay the current outstanding mortgage.

As stated by the guys, there are several lenders whom don't have strict income requirements (this is becuase its unregulated lending) - but the propety must be self supporting, eg rental income 125% of mge interest (use 6% as a ballpark calc figure), min value of 40k, etc.

A whole of market broker will be able to assist with your remortgage application, whilst providing you access to intermediary only products that otherwise wouldn't be available to you.

Wish you all well ...

Hope this helps

Holly x

Thrugelmir

homers1 wrote: »

I wish I had not told them she had died and just carried on I don't think they would have ever known if I kept payments up.

The consequences of such an action are not advisable.

Who are the executors of your late wife's estate?

homers1

Firstly I am so sorry for your loss, and hope that you and your family are slowly making your way xxx

Moving to the property.

Yes the mortgagor was your wife, upon her death all debts must be repaid from her estate, and all contractual agreements effectively end, which will be written into the mge t&cs (ie debt is repayable on death (standard format) ).

If the lender have refused to effectively tsf the mge into your name, then you will need to either sell the property or remortgage it, in order to repay the current outstanding mortgage.

As stated by the guys, there are several lenders whom don't have strict income requirements (this is becuase its unregulated lending) - but the propety must be self supporting, eg rental income 125% of mge interest (use 6% as a ballpark calc figure), min value of 40k, etc.

A whole of market broker will be able to assist with your remortgage application, whilst providing you access to intermediary only products that otherwise wouldn't be available to you.

Wish you all well ...

Hope this helps

Holly x

holly_hobby

Can I make it clear Homers and I are definately 2 different peeps ... !!

I think he's tried to quote my post, and add a response, but its all gone a bit pete tong :eek: !!

Hopefully he'll realise and correct ....

Holly x

homers1

If they force me sell this property, how long before they want me to sell
could I not delay the sale, continue paying the mortgage on what grounds can they force a sale.
homers1

holly_hobby

On the grounds that the sole mortgagor has died (with I guess no lifecover in place or funds available, to independentkly repay the debt), and it is a legal requirement of their executor/administrator that all debts (where funds are available) are discharged from the estate in a timely manner - so they are calling the shots somewhat.

They are however likely to be a little gentle given the circs, eg 3 mths would be reasonable, unless you are selling and are strugging - longer term arrangements are lender and situ specific.

However, you must also bear in mind that BTL lending is unregulated borrowing, and as a 2nd commercial property, they may be more rigid in a strict discharge timetable.

You need to get into a broker, see what remortgage options you have, and then consider your options.

Hope this helps

Holly

amnblog

Looks like a bit of life insurance would not have been inappropriate here.

Rarely considered with buy to let mortgages but this case shows the worth of it.

Thrugelmir

homers1 wrote: »

If they force me sell this property, how long before they want me to sell
could I not delay the sale, continue paying the mortgage on what grounds can they force a sale.
homers1

Legal speaking its not yours. Until the mortgage is discharged it belongs to your late wife's estate. So does the rental income for tax purposes I should add.

The executors of the will could find themselves in deep trouble if they do not conduct the winding up of the Estate in the proper manner.