Property/mortgage after my death

Chris_N_3

Hi

I am in my early thirties and was very recently diagnosed with cancer. It has been diagnosed very late and I probably have less than 6 months to live.

With hindsight, I obviously should have taken out life and critical illness cover with my mortgage, but I didn't as I was single at the time (and believed myself invincible of course). I do have a 'death in service' payment through work but I am worried this will not end up being paid depending on how long I live, and particularly as I'm on a fixed term contract with less than a year to run.

I got married recently and my priority is that my husband can continue living in our flat when I die, as we are part of a great community who will support him.

The mortgage and flat are entirely in my name. The LTV is nearly 50% due to rising London property prices.

As I understand it, my husband will inherit the flat on my death and would need to pay off the mortgage in its entirety or get a new mortgage. Unfortunately as he earns a lot less than me he would not be able to get a mortgage for the outstanding amount (5.75x his income).

Assuming the work life assurance doesn't materialise, could anyone help me think through the options? I wonder if family might help out with the difference between what I owe and what he can borrow. How long would a lender (specifically, the Co-op) give him to arrange this when I die?

Many, many thanks in advance.

koexelek

What an awful situation to have to face.

Made me feel ashamed about the trivial things I have been moaning about today.
Lenders are reasonably sympathetic in this situation, and should give your partner a few months to sort it out.

His best bet will be to raise as much as he can on a mortgage, with family making up the shortfall, if that is possible.

Hopefully you have already made a will ?
If not , do so asap.

All the best to you

Mrs_Soup

I don't know if it would help but could you transfer the flat and mortgage into both names now as it may be easier for him to continue paying than to have to set it up new. Also if you put the flat into joint names it will pass automatically to him providing you go for a joint tenancy rather than tenants in common. And make a will. Very sorry to hear your news though, all the very best.

dimbo61

Yes you need to make your wishes clear.
Most companies have death in service benefit so you need to speak to work asap and write the life assurance into trust for you husband.
You need to see a solicitor.asap

Chris_N_3

Thank you for your quick reply and your kind wishes. It's all just sinking in to be honest and this feels like something I can influence.

I just had a promising realisation, in that there is a modest lump sum attached to a pension from a previous employer (local government). It might just about make that gap do-able assuming we don't get into huge debt while I am ill.

I don't have a will, but I realise this is something I need to sort out urgently.

I also have bank accounts and all sorts of bills in my sole name which need to be made joint.

Upsidedown_Bear

Very sorry to hear your news.

I don't know if these might be useful for you to read. They aren't specifially about property/mortgages but might help you both think about other things that will/might need doing.

http://www.moneysavingexpert.com/family/what-to-do-when-someone-dies
https://www.gov.uk/after-a-death

stator

Very sorry about your situation.

If you have spare money you could pay it into a pension and get tax relief and this would then be inherited by your partner. If your employer contributes too then it could be a very efficient way of saving extra money.