Death oif mortgage holder

LannieDuck

If I've read this right, the 20 yo has a job. Could s/he get a mortgage for it?

They might welcome the chance to get on the housing ladder, and your friend could buy them out of their share in a few years' time to enable them to go off and buy their own flat somewhere?

Depends a lot on what the 20 yo wants to do, obv.

not_waving_2

II do understand your point of view savvy sue and if it comes to there being no option to keep the house then much better to sell of her own volition to get the best possible price and be able to plan better.

There are a couple of plus points to keeping the house for the moment. One is that it gives her stability, unlike the private rented sector where you can be forced to move through no fault of your own pretty much whenever the landlord wants. Another is that, with interest rates being low and the amount of the mortgage being small, then the monthly payment is tiny compared to private renting. It may be that this is not so much of an issue if she gets no help with the mortgage but would get housing benefit. The other is school for the youngest child.

In a few years time when the youngest has moved on and the grief is not so raw then I think she would be happier to sell then if possible, rather than having to now.

missbiggles1

not_waving wrote: »

II do understand your point of view savvy sue and if it comes to there being no option to keep the house then much better to sell of her own volition to get the best possible price and be able to plan better.

There are a couple of plus points to keeping the house for the moment. One is that it gives her stability, unlike the private rented sector where you can be forced to move through no fault of your own pretty much whenever the landlord wants. Another is that, with interest rates being low and the amount of the mortgage being small, then the monthly payment is tiny compared to private renting. It may be that this is not so much of an issue if she gets no help with the mortgage but would get housing benefit. The other is school for the youngest child.

In a few years time when the youngest has moved on and the grief is not so raw then I think she would be happier to sell then if possible, rather than having to now.

But if she and the working child can't between them get a mortgage, she won't have the option of waiting a few years, will she?

Even if the house is in poor repair, she ought to be able to sell it, pay off the mortgage and buy something smaller for herself and the teenager. Once she's in employment and the youngest has left home she'll then have somewhere she can afford to live on her own without outside help.

not_waving_2

House would be worth 150k if perfect, 100k in current state and 40k left on mortgage (figures rounded for fees etc.). If sold now at repo auction for 80k less fees not sure the remaining amount would be enough to buy somewhere new. In fact it wouldn't. But it would be enough to ensure no HB until it is run down.

G6JNS

not_waving wrote: »

House would be worth 150k if perfect, 100k in current state and 40k left on mortgage (figures rounded for fees etc.). If sold now at repo auction for 80k less fees not sure the remaining amount would be enough to buy somewhere new. In fact it wouldn't. But it would be enough to ensure no HB until it is run down.

What do you mean by a repo auction? A mortgagor is legally obliged to get as much as they can for a property. Just putting it up for auction without marketing it the normal way does no satisfy that requirement.

xHannahx

If they owe £40k, the LTV is less than 40%, and the income needed for a mortgage even for a 3 times multiplier would be £13333. A 40 hour a week minimum wage job would bring in £13520.
I'd suggest speaking to a whole market mortgage broker and sorting out a tight budget to ensure affordability,

missbiggles1

not_waving wrote: »

House would be worth 150k if perfect, 100k in current state and 40k left on mortgage (figures rounded for fees etc.). If sold now at repo auction for 80k less fees not sure the remaining amount would be enough to buy somewhere new. In fact it wouldn't. But it would be enough to ensure no HB until it is run down.

Well then, put it on the market now, having done as much as you can to make it attractive, and you may well clear over £50/60k. There are plenty of places in the UK where you can get a property for 2 people with that, particularly if in not a great state of repair.

FreeBear

not_waving wrote: »

I should add that she has not yet applied for LOA due to lack of funds but I could help her with that.

not_waving wrote: »

She is currently in benefits (she was carer for her husband before he died) but it looking for employment.

If your friend is in receipt of a qualifying benefit and/or has no savings, she should qualify for fee remission - This will save her the £215 normally charged for probate.

konark

If your friend is in receipt of a qualifying benefit and/or has no savings, she should qualify for fee remission - This will save her the £215 normally charged for probate.

Is this correct? I thought the fee remission was only on the size of the estate.i.e under £5,000

theoretica

not_waving wrote: »

She would be able to continue to pay the mortgage but the bank will not allow that and she would not be able to get a mortgage in her name. Because the mortgage is not in her name then the bank will not accept payments from her.

I find this really odd - if they had to go to court to reposess is the court really going to go in the bank's favour and reposess a child's home when payments aren't even in arrears, just the wrong name?

This may be an unintended consequence of the mortgage affordability criteria. But surely there is a sensible way around it. I wonder if Shelter, the housing charity, could help with advice? What if instead of a mortgage she looked at a secured loan, are the rules different?

There was another poster here a while back who had a similar position and the bank did accept the change in name.