Paying off the mortgage of a late relative.

Retireby40

Hey folks.

I have a quick question regarding a mortgage situation. It isn't my situation but a friends so while I have some details I don't have them all.

My friends mother died a few months ago and unfortunately she didn't have any life insurance as she suffered from heart problems and basically couldn't afford it.

She has a house worth about 120k and there's about 40k and 11 years of the mortgage still left ( she bought the house for around 85k give or take).

My friend is in a position where they can pay the 40k of the balance and get the house transferred into his name. In the will everything is for him he has no siblings.

Will he have to pay any early repayment charges on this due to the circumstances? Or could he possibly have to pay a little bit less due to early repayment? I have no idea what kind of mortgage it is but he was just worried on top of the 40k he may have to pay extra but I thought under those circumstances the bank would just ask for the balance and no extra charges.

Thanks

davidmcn

Surely the first thing to check is whether there even are early redemption charges, before worrying about whether they're going to be enforced? If they know what the mortgage balance is, why don't they know anything else about the current terms?

amnblog

Sounds like your friend is £80K up, so quite why an early redemption charge on £40,000 would be a problem for him is beyond me.

foxy-stoat

Retireby40 wrote: »

he was just worried on top of the 40k he may have to pay extra but I thought under those circumstances the bank would just ask for the balance and no extra charges.

If he is that worried about paying a few grand more then the house will have to be sold, the Estate Agents will take their cut and the legal fees will need paying along with any repayment charges anyway and your friend can have the balance in cash, after any other debts have been settled.

getmore4less

You can't inherit a mortgage.

Technically the house is not really part of the estate, only the beneficial interest in the equity.

The lender needs paying back whatever happens.

They may allow a new borrower(beneficiary) a mortgage on the same terms with no fees, or waive any fees.

Only the lender can tell them what they will consider.

By now the executor(s) should have full details of the mortgage.