halifax

gmac123

im looking for advice..my mother died in 1998, and her endownment did not cover the mortgage amount as she changed it. It took months to complete the legal side of me being executor
After paying bills funeral etc the amount paid in a lump sum to the Halifax was £10,000 with a remaining £10,000 owed. They refused on a number of occasions to transfer the title to my name, but continued sending correspondence to my mum (regardless of being notified asap). They paid two different insurance claims (in my mums name) and this was their insurance that was added to the bill each year.
For the last two years of being involved 2002 -2004 they then charged me monthly based on a daily interest rate which was roughly £500 per month. When it was settled in 2004 and paid in full the morgage owed was more thn previously.
is this right?

Goldiegirl

When you say they paid out two insurance claims, I think you are talking about buildings insurance.

A borrower could make their own property arrangements if they wished. But if they opted to take the Halifax's insurance, the premium was debited to the mortgage account to make sure it was paid. The borrower could then pay it back into the mortgage account.

If the insurance premium wasn't paid back into the mortgage, then the mortgage debt would increase by the amount of the insurance premium, and additional interest would be paid as the mortgage debt would be more.

As two claims were paid out, it seems that you wanted this insurance.

You also say they you were charged interest. Did you make monthly payments?

Because if you didn't make monthly payments there would be no money going into the mortgage account to offset the interest being charged.

So no monthly payments and/or no insurance premium being paid back into the account would result in the amount owed increasing.

It sounds right to me

kingstreet

gmac123 wrote: »

They refused on a number of occasions to transfer the title to my name

Yes. While there is an outstanding debt on the property they would not permit a change of title.

In the estate "business" you are two legal entities. You're the executor of the deceased and you are a beneficiary of the estate. The best way to approach this would have been for you (the beneficiary) to purchase the property from the estate.

You would raise a mortgage on the property in your name, using that money to repay the Halifax mortgage - the debt on the estate. Once that was done, Halifax would release the security and you would become owner following a transfer done at the Land Registry by your solicitor.

Did you seek professional advice in how to handle this?

Did you submit the correct forms to HMCS, including the estate assets and liabilities and list of beneficiaries and have yourself formally appointed executor, or administrator if there was no will?

In answer to your other questions, Halifax has a mortgage deed executed when your mother took out the mortgage. Among the terms will be the right to charge interest on arrears and to arrange insurance if the mortgagor fails to do so, or if the mortgagor prefers to have the lender's insurance. As GG said, if you didn't want the premiums paid like that, you should have told Halifax, or paid them off as soon as they were added.