Do we need probate in order to pay off deceased uncle's mortgage?

tumbledowngirl

konark wrote: »

Mortgage ? £4,000? I'm sure I read somewhere you couldn't get a mortgage for less than £25,000. Are you sure it's a mortgage?



A 40 year mortgage to pay for some kitchen units that will last 10 years tops.

Are you sure this wasn't just a personal loan?

From what we understand, it's the Halifax Retirement Home Plan. It's like equity release, except that the interest is fixed for the duration of the term, not compound.

tumbledowngirl

Keep_pedalling wrote: »

The OP said it was an equity release scheme, so compound interest would have pushed the amount to be repaid to £20,000+ After 20 years. Until they get a final statement they will not know how much is needed to settle the debt, and unless the bank have agreed to freeze the interest payments the amount is still rising so they will be in no hurry to get paid

Fortunately, the interest isn't compound. From what I have been told, the product was one of the first life-long mortgages - like equity release but with fixed interest payments.
It was taken out 20 years ago and was due to finish when my husband's uncle was 104, technically.
The interest payments are small, but we just want to pay it off now - Halifax have had enough money from him already!

Keep_pedalling

tumbledowngirl wrote: »

Fortunately, the interest isn't compound. From what I have been told, the product was one of the first life-long mortgages - like equity release but with fixed interest payments.
It was taken out 20 years ago and was due to finish when my husband's uncle was 104, technically.
The interest payments are small, but we just want to pay it off now - Halifax have had enough money from him already!

I don't think there were too many of those schemes in existence. Have they frozen further interest payments until you sort probate?

tumbledowngirl

Keep_pedalling wrote: »

I don't think there were too many of those schemes in existence. Have they frozen further interest payments until you sort probate?

No, they haven't as far as I am aware.

marcelli

It might be they released funds to enable payment of the funeral, or possibly because it is not a vast amount.
As for the equity release, well, i don't know the legal ins and outs except that if it is related to a property there would need to be a papertrail i would think which would go on land registry database showing history of ownership which clears the way for future owners of the property, and i would think that an equity release scheme would come under this blanket. The property regulations/laws will overrule any of Halifax's own financial ones, in part anyway.