Joint to sole mortgage after bereavement

Missingursula

I would be really grateful for information and advice here please.

My father died two weeks ago and I have been helping my mother sort out his affairs. Ultimately, there isn't much to sort as he had two financial relationships- his joint current account and joint mortgage, both with my mother. The current account has been transferred to her sole name today, but they didn't really give any indication what would happen with regards the mortgage, advising the bereavement team would contact her in 5 days. They offered a 2 month payment holiday and no more.

The mortgage is fairly small in relation to the value- probably 30% of its value. My mother's income however is not large, and whilst we would support her to pay the mortgage, I'm not sure the bank would just accept that. I'm worried that it is not as simple as transferring into her sole name (although my father's will leaves everything to her) and they will wish for her to reapply for a new mortgage. She is a pensioner with a small private pension in addition to her state pension, so is on a modest income.

We have talked about selling the house within the next few months, but nothing has moved in our area for about 2 years.

Does anyone know if the bank are likely to simply transfer it? My mother has no other debts, and my father had none either.

Thank you.

Thrugelmir

Missingursula wrote: »

they will wish for her to reapply for a new mortgage.

You've answered your own question. Lenders have to act in a responsible manner, in your mothers case affordability will be the key.

Nothing to stop you assisting your mother in the meantime. Payment holidays simply means that interest will accrue and compound, increasing the debt owed.

Missingursula

Ah,ok thank you.

So, apologies if this is a stupid question, but would they consider regular 'gifts' of cash from me as income?! It would be too political in our family if i was to suggest putting my name on it with her jointly.

Thrugelmir

Are you in a position to apply for the mortgage with your mother?

Goldiegirl

Is the property held on a joint tenancy or tenants in common basis.

If it was joint tenancy, the property automatically reverts to her.

I worked for a big lender up until 4 years ago. If it was a joint tenancy, the mortgage would also revert to the surviving borrower, on production of the death certificate.

If it was tenants in common, the deceased's share could be inherited by someone else, and the process the transfer the names on the mortgage was more complex.

The first step is to find out what tenancy basis the property is held and then approach the lender to find out their requirements for transfer.

Bear in mind, a lot has changed in the lending industry since I last worked there and you lender will have it's own requirements.

CLAPTON

if its a joint tenancy then the house become your mothers.

the mortgage was always your mothers so nothing has changed (both were equally responsible for the mortgage)

as long as the mortgage payments are made there should be no problem