Help needed on how to contest probate

Tom99

[FONT=Verdana, sans-serif]You can redirect the inheritance using a deed of variation, even if owned as joint tenants, but I am not sure that will help if your husband is liable for the whole mortgage.[/FONT]

nom_de_plume

There are 2 issues here. One is how the property was owned (joint tenants or tenants in common) and the other is the mortgage.



I suspect the mortgage debt would be jointly and severally which means that either party would be responsible for the full debt.


Quite how things would work if the property is owned as tenants in common and with negative equity I cannot say for certain but gut instinct suggests at least half of the negative equity would fall on the deceased estate but I stand to be corrected.


I suggest OP's husband gets a copy of both the Land Registry document and the mortgage agreement and makes an appointment with a solicitor. Don't rely on what the executor and / or the lender tell you.

Tealblue

OP - what formal arrangements were put in place at the time your husband and his former partner went their separate ways? Is there a written agreement about who pays the mortgage, and whether the pair of them agreed that life insurance had to be in place (and if so, for how much and in favour of whom - the lender?). That seems to me the starting point.

Are you sure the property is in negative equity, or are you simply surmising that is the case? Might be worth an up to date valuation in case you are fretting about something which is nothing like the problem you feel it could be.

Mush1020

I have checked that and it looks like tenants in common.
I have rang probate today and basically been told to go away.

My husband was still on the mortgage because the company would not let his name be taken as his ex partner on paper could not afford the payments even tho she paid the mortgage on her own for 10 years.

It looks like we are now stuck with this property and going to sell for a lot less then the mortgage and have to take loans out

NordicNoir

Linton wrote: »

If the house was held as a joint tenancy then your husband automatically owns the house on the death of the other joint owner - it isnt part of the estate and so would not be declared for probate.

This is not correct. Regardless of whether the house is held as joint tenants or tenants in common, the amount owned by the deceased is included in the probate documentation and is subject to IHT, if any is due. In the case of joint tenants, it automatically passes to the survivor rather than as directed by a will or intestacy.

Linton

MichelleUK wrote: »

This is not correct. Regardless of whether the house is held as joint tenants or tenants in common, the amount owned by the deceased is included in the probate documentation and is subject to IHT, if any is due. In the case of joint tenants, it automatically passes to the survivor rather than as directed by a will or intestacy.

Thanks- interesting. Now in this case when the house clearly has a commercial value but is in negative equity what happens? Does the ex's estate bear any responsibility for repaying the joint mortgage? What are the IHT implications? Surely the house cannot attract IHT or can it?

Mojisola

Linton wrote: »

Thanks- interesting. Now in this case when the house clearly has a commercial value but is in negative equity what happens? Does the ex's estate bear any responsibility for repaying the joint mortgage? What are the IHT implications? Surely the house cannot attract IHT or can it?

It should be a debt that has to be repaid from the estate.

nom_de_plume

This link makes interesting reading. Assuming it is factually correct it suggests that even in the case of a joint tenancy arrangement where the property would pass to the other owner(s) outside of the estate, the deceased's share of any outstanding mortgage would become a debt to their estate. If, and it's a big if, the property is owned as joint tenants, I expect this would actually render the OP's husband with a profitable situation rather than a negative.

If, as OP has suggested above, the property is held as tenants in common, the deceased's share of the property would become a part of their estate as would their share of the debt. OP's husband would basically own a (presumably 50%) share of the negative equity.

OP, you really need some professional and independent advice on this matter.

nom_de_plume

This link however seems to disagree with the one above, suggesting that the mortgage debt would pass to the survivor too in the case of joint tenancy.
As usual, the internet is no help whatsoever....

badmemory

Are you absolutely sure the property is still in negative equity after 10 years? Or was the mortgage an interest only one?