Shared appreciation mortgage

vision2009

I would be grateful for some advice please.
My elderly relative has told me she wishes to leave her home to me in her will. Around 2004 she took out a shared appreciation mortgage of around £15,000 i think. What would the financial implications of this be as far as i'm concerned if / when she passes away?
My limited understanding is that the mortgage company will take the majority of the money from the sale of the house.
Could i be left to owe them any money myself?
Any help appreciated thanks

TrickyDicky101

You personally can't be liable for any of your relative's debts (so you can never end up financially worse off as a result of being a beneficiary of a will).

The implications of the SAM are that any increase in the house valuation from the time it was taken out will be split between the lending bank and the estate (depending on the SAM terms - whatever they are). Presumably the mortgage will need to be repaid out of the estate's balance, then what's left (after deduction for SAM terms) is yours (assuming no other estate debts need to be settled).

vision2009

Will the lender of the SAM take possession of the property upon my relative passing away?
Or, If i were left the property in the will, would i have to then sell the property and pay the lender of the SAM whatever is owed at the time?
All a bit confusing really to me.
thanks

TonyMMM

Whoever is named as executor in the will would have to sort this out - probably by the sale of assets (the house) and paying of any debts before passing the balance to you.

The exact process may depend on the wording of the will - but if you are just a beneficiary it isn't something you would have to sort out.

vision2009

Thanks, I would probably be executor as well as beneficiary.
Solicitor could be executor but i guess this would be quite costly.