Uncle sold a mortgage that finishes when he's 104

foxy-stoat

tumbledowngirl wrote: »

My husband's uncle died last week, at the age of 84.
We are having to deal with his estate and have found paperwork for a mortgage sold to him 20 years ago. The original amount borrowed was just under £4, for a new kitchen. The term is 40 years, with total repayment of over £19k.
A brief look at recent mortgage statements suggests that he's owes more at the end of each year than he did at the start, due to interest.
There's still 20 years left to go.


Can anyone shed any light on what on earth's gone on?

1. Is there any life insurance taken out with the mortgage that the Estate can make a claim on?
2. Sell the property and clear the debts - get settlement figures

Not much else to do really, I am not sure if the Estate can claim PPI or mis-selling....maybe a case of mis-buying but no way to prove either way.

Sorry about your loss, hopefully you can deal with all the finances ok.

dunstonh

Maybe it was a form of equity release with voluntary payments.

It is also possible that he increased the borrowing over time. Lots of people did in the credit boom years. They saw their property as a cash machine.

tumbledowngirl

kingstreet wrote: »

I suspect it's a Halifax Retirement Home Plan?

It was possible to have interest only and the idea was to repay the capital from the property sale proceeds on death or from the estate.

It was the first real lifetime mortgage widely available.

It is with Halifax, so I suspect that's what it is. Thank you for the info.

tumbledowngirl

foxy-stoat wrote: »

1. Is there any life insurance taken out with the mortgage that the Estate can make a claim on?
2. Sell the property and clear the debts - get settlement figures

Not much else to do really, I am not sure if the Estate can claim PPI or mis-selling....maybe a case of mis-buying but no way to prove either way.

Sorry about your loss, hopefully you can deal with all the finances ok.

We haven't found any paperwork for life insurance (but plenty for personal injury...).

It's all a bit of a mess at the moment; he doesn't appear to have left a will and his legal next of kin is his 90 year old brother.

Brock_and_Roll

tumbledowngirl wrote: »

We haven't found any paperwork for life insurance (but plenty for personal injury...).

It's all a bit of a mess at the moment; he doesn't appear to have left a will and his legal next of kin is his 90 year old brother.

Going to be governed by the intestacy rules then.


Complicated but in a nutshell, estate will go to any children first (or grandchildren if children deceased)- brother will not inherit unless there are no children or surviving spouse).

tumbledowngirl

Brock_and_Roll wrote: »

Going to be governed by the intestacy rules then.


Complicated but in a nutshell, estate will go to any children first (or grandchildren if children deceased)- brother will not inherit unless there are no children or surviving spouse).

No children, no spouse - just his elderly brother and my husband.

Keep_pedalling

tumbledowngirl wrote: »

No children, no spouse - just his elderly brother and my husband.

Then everything goes to his brother, I just hope he has a will in place.

tumbledowngirl

:beer:

Keep_pedalling wrote: »

Then everything goes to his brother, I just hope he has a will in place.

From looking on the gov.uk site, the estate will be split equally between his brother and my husband, since my husband's mum has already died - where there are no children, it seems it passes to siblings or their children if they have already died.

tumbledowngirl

Thanks for all your replies.
Totally agree that it was his money to spend as he wanted, especially given he had no dependents.
That said , don't you just wish people would write a will or at least communicate their wishes to their nearest and dearest?

Rosie111

£10 a month for 20 years only adds up to £2400 paid. So over 40 years it would be £4800. I can't understand where the figures given come from. Or am I missing something?