Help us to understand , will and mortgage advice pls

pixiepip

Our dad passed away Thursday
We are trying to make sense of what will become of his rented property
A will made in 2007 is what we are going off
Where do we start ?
Please some one help my brother and I are very confused
There is an outstanding £60,000 on the house
Will it have to be sold?
Is there such a thing as insurance on the mortgage to cover what's owed?

Tia

dzug1

There is such a thing as insurance to pay off a mortgage - but these days not many people bother (can afford??) to take it out. So you need to check if he had it.


If not, the house will have to be sold to pay it off, unless the cash can be raised some other way.

Mojisola

First thing is not to rush into anything.

Registering the death and organising the funeral are the first priority.

As you have a will, that's the next step - who are the executors and what does the will say?

TomEdpost

Sorry for your loss. The fact you have a will is a good start and will set out "who should get what". As others have said, you will need a Death certificate and then think about the funeral etc.

As to the money side of things, you will need to inform all banks/lenders about the death. You will probably also need probate as it sounds as if he is leaving over £5000. The people named as executors in his will have the main responsibility for sorting this out but may need a solicitor or probate specialist.

I assume you mean your Dad owned a house with a Mortgage outstanding and he rented this out? If so, then the house will transfer to the beneficiaries (presumably you and your brother) and the lender might also agree to transferring the outstanding loan, depending on your finances and the rental income from the property. If the rent pays the mortgage and leaves some over then buy to let can be a good deal. If not, then the house might have to be sold to pay off the loans etc but the beneficiaries would share what's left.

The main thing is not to panic or rush. This will take several weeks..even months ...to sort out so take things steadily. With the house, I would tell the lender about the death and also think about which bank account the tenant is paying the rent into and talk to them. On a death, I think the Bank has to close the account but this may mean the tenant's rent gets bounced back ... not sure about this ..perhaps others in this forum can help? ..but worth talking to the Bank. Hope this helps.