How can this be legal?

macca1974

As your father was 85 when the mortgage was taken out, are you sure that it wasn't some sort of "equity release" mortgage. I'm no expert, but I'm sure I remember there being such things around 10 years ago, where you could release some money from your property, pay the interest and then the bank received it back after you died (thus the term being as long as it was).

So what might have happened is that your father wanted to draw down some money from the property and not have to worry about it until he died.

Pixie5740

Who is the lender? Halifax? It could be the Retirement Home Plan where it was possible to have an interest only mortgage and the idea was to repay the capital from the proceeds of selling the property or from the borrower's estate when they died. If not Halifax then perhaps it's some other lender's lifetime mortgage. All legal and above board.

Presumably your father needed/wanted to borrow money at the time and was able to at the time. Is he unhappy with his financial arrangements? If not, why are you sticking your beak in?

Kynthia

Eloise69 wrote: »

Hmm, now I'm wondering how I can get it transferred to myself. No way on earth is my guess.
The reason I was wondering about the legality is the fact that this kind of deal is unheard of these days, or is that just because it is so good?

Why would you want the debt in your name when your dad has no trouble making the payments and isn't going to be expected to pay the balance back any time soon?

Have you seen the other thread below this one about someone who has found out their parents' IO mortgage is coming to an end soon? The parents have no way to pay it off without selling their home and it's unlikely to leave them enough to buy anywhere else. So where will they live, it's very stressful for all? There are regularly threads like this on this board and your dad is unlikely to have this problem. As he's unlikely to be here when the balance needs paying he won't have to find somewhere else to live with little capital when the house is sold or other funds in his estate are used, he gets to stay in is home as long as he likes.

AnotherJoe

Eloise69 wrote: »

Hmm, now I'm wondering how I can get it transferred to myself. No way on earth is my guess.
The reason I was wondering about the legality is the fact that this kind of deal is unheard of these days, or is that just because it is so good?

You cant transfer a mortgage.

You could buy his house off him, but what would the point of that be, presumably you'll inherit it at some point?

Whats your reasoning about transferring it ? Is he struggling to make the payments? If so you could pay them, making the payments recognized as a loan so it can be reclaimed from the estate.

Thrugelmir

Eloise69 wrote: »

Thank you all for the replies; my question re the legality is because I don't see how he can reasonably be expected to live until he is 113.

Somebody of that age died this year. There's someone alive who is currently 112.

The lender may have underestimated possibly.

The term allows him to remain their until his death.

AnotherJoe

Eloise69 wrote: »

Thanks all for your replies; my question re the legality is simply because I don't see how he can reasonably be expected to live until he is 113.

Just to add, why do you think he is expected to live to 113?

Their expectation is that the mortgage loan will be repaid at termination of mortgage term, or mortgagee, whichever comes sooner, just like every other mortgage.