What happens if the person you live with dies before the mortgage has been paid off?

Donna21

I've been living with my grandfather for the past couple of years, acting as a full time live-in carer but as he's getting on in years, I'm concerned about what might happen to me if he dies.

We still have the mortgage to pay off and my name isn't on it. He hasn't made a will either. I worry that when he dies, I'll be left homeless.

Will I have any rights to the property or will it be taken? Is there anything I can to prevent this from happening?

ACG

How much is the property worth?
How much is the mortgage?
Does he have any living children?

McKneff

He has the mortgage to pay off, there is no 'we'


If he doesn't make a will, any debts will have to be paid from his estate and any surplus will go to his next of kin.


Does he have anything in place to pay off the mortgage in the event of his death. Insurance etc. If not, it will probably end up being sold to pay off the mortgage.




I would suggest you sit down and talk to him about it all.


How old is he please.

bryanb

He really must make a will

Donna21

@ACG

Not sure how much the property is worth. It's an ex-council property. He was buying it using that right to buy scheme Thatcher introduced.

I think there is about £12,000 left to go on the mortgage.

He has one living daughter who is thinking about moving in with us to help get it paid off faster.

@ McKneff

He doesn't have anything in place to pay off the mortgage in the event of his death. He is 87 years old.


If we paid the mortgage off before his death, would he still need to make a will in order for the house to be passed down to his daughter or myself?

holly_hobby

If Gdad dies with any debts outstanding they must be repaid from whats available in his estate, which may mean the sale of the property to redeem the mortgage and any other os debts.

If Gdad dies with no valid will in place, he dies in whats referred to as "intestate" - this means that his estate will be distributed under strict succession order as laid down within the laws of intestacy.

In his case, if there is no surviving spouse, it next goes to any surviving issue (children) - if your mum is an only child, or the only living child, everything owned by Grandad (after discharge of all debts, commitments, and funeral costs) will go to Mum, if she is one of several living children it will be dividied equally amongst them.

If he is able to make a will from sound mind (ie he doesn't have any cognative imparement/demensia etc), then his residual estate (inc the house if the mortgage is repaid either pre death or on his passing) will go to whomever he nominates (unless there is a successful challenge).

Hope this helps

Holly

PS - quick link to expand on the above ... https://www.moneyadviceservice.org.uk/en/articles/dealing-with-the-debts-of-someone-who-has-died

McKneff

Good post holly hobby and easy to understand for those who have never had to go through it. OP, you must try to get granddad to make a will.


No point him just saying it Im leaving my house to xxxx, it has to be done properly, signed and witnessed

holly_hobby

McKneff wrote: »

Good post holly hobby and easy to understand for those who have never had to go through it.

Thanks Pal ...

I always try to explain in all my posts, the process, why something is a certain way, or can't be done etc - as it helps laymen to understand and gain confidence to take forward.

Holly xx