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Tenants in Common- Mortgage after Death

Let me present you with a scenario.

Mr A and Mr B are tenants in common on a property with 50% ownership each. The mortgage is solely under Mr A's name.

Mr A subsequently dies. His 50% is left to his wife.

Am I right in thinking that if his wife then takes on the mortgage solely, then Mr B is still able to retain his 50% interest without being on the mortgage itself and subsequently is still able to leave his share to someone else in will? Or does he have to be on the mortgage to be able to do so?

In the event that neither can take on the mortgage, am I right in thinking that the proceeds of sale from selling the house is then split 50/50 between wife and Mr B? Or does Mr B relinquish his right to any proceeds from not being able to get on the mortgage?
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Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Whose name(s) is on the deeds
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The mortgage is solely under Mr A's name.

    Somewhat unusual situation. Is this an actual scenario?
  • You can't just take over mortgages.

    You need to check the terms of the mortgage.

    Often it will be secured on the full property even though only one owes the debt.

    The estate only has the beneficial interest of what's left after the secured debt is settled and any other beneficial ownership.

    New lending will need to be secured, the existing lender may entertain the same arrangement.
  • Thrugelmir wrote: »
    Somewhat unusual situation. Is this an actual scenario?

    It could transpire to be. Mr A would be me and Mr B my father. My father is 75+ do would not be able to take on the mortgage in any case so was wondering what would happen if I went first.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Bit of an unusual situation, if you're sure you've got it right, as both owners would have required to sign the mortgage deed in order to charge the property - lenders generally require them both to be borrowers.

    Anyway I expect the executors could require the property be sold if that's the only way to repay the mortgage.
  • xylophone
    xylophone Posts: 45,428 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Surely it would best for the borrower to take out life insurance to cover the repayment in the event of his death before the end of the term?
  • davidmcn wrote: »
    Bit of an unusual situation, if you're sure you've got it right, as both owners would have required to sign the mortgage deed in order to charge the property - lenders generally require them both to be borrowers.

    Anyway I expect the executors could require the property be sold if that's the only way to repay the mortgage.

    That's true. Can a document of trust be only made at the time of a purchase/re-mortgage or can it be made at any time?
  • xylophone wrote: »
    Surely it would best for the borrower to take out life insurance to cover the repayment in the event of his death before the end of the term?

    Yes that would be a prudent move to make.
  • This thread needs to be read with an older one.

    https://forums.moneysavingexpert.com/discussion/5822945/staving-off-a-potential-family-dispute

    As Mr B is not currently an owner, is elderly with little income, and there is still a large proportion of the house mortgaged I can’t see how he can ever become a joint owner again.
  • davidmcn
    davidmcn Posts: 23,596 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    This thread needs to be read with an older one.

    https://forums.moneysavingexpert.com/discussion/5822945/staving-off-a-potential-family-dispute

    As Mr B is not currently an owner, is elderly with little income, and there is still a large proportion of the house mortgaged I can’t see how he can ever become a joint owner again.
    Oh !!!!!! - why can't people just stick to one thread rather than start a new one with a misleading scenario?
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