Joint mortgage..do I need it

sam1970

Our mortgage and title deeds has been always in my name as my wife is a house wife. Recently a friend of mine warned me that this might not be a good idea as if I pass away my wife and kids might be in big trouble. I was under the impression that a will should sort that out as it states that the property should go to my wife after my death. Any thoughts please?

getmore4less

It can cause issues if the wife can't get a mortgage.

Life cover can solve that so a mortgage is not needed

Joint help a bit because the wife just take over but there is then the affordability as it needs paying.

foxy-stoat

If your wife is unable to secure a mortgage on her own then the property will have to be sold and money used to repay the mortgage. Unless you have life insurance that covers the outstanding mortgage and debts that is.

sam1970

sorry I should have clarified..I have a life insurance policy which will cover the mortgage

ACG

Aside from whether or not your wife can get a mortgage or has life insurance to pay off the mortgage, if you did does she really want the hassle of putting the property in joint names?

I cant really think of any reason why you would not put it in joint names to be honest.

davidmcn

sam1970 wrote: »

sorry I should have clarified..I have a life insurance policy which will cover the mortgage

So what sort of "big trouble" was your friend talking about? Your property isn't going to be inherited by anybody else.

sam1970

As I said..the worry that if I die, the house will not automatically go to my wife. Can that happen?

Mojisola

sam1970 wrote: »

Our mortgage and title deeds has been always in my name as my wife is a house wife.

I was under the impression that a will should sort that out as it states that the property should go to my wife after my death.

sam1970 wrote: »

As I said..the worry that if I die, the house will not automatically go to my wife. Can that happen?

If your will was mislaid, your estate may have to be split between your wife and the children, depending on its value. This could leave your wife having to sell the house to pay the children their share.

I think like ACG - why wouldn't you want your wife to be a joint owner of the family home?

ACG

Wills can be contested.
It also has to go through a process which takes time.
While your wife is grieving does she want this added to a list of things to do?

sam1970

Thank you guys. So I understand now it is better to put her name on the deeds. Does it have to be added to the mortgage too? How difficult that is retrospectively (both for deeds and mortgage)?

sam1970

I have just read on COOP legal services website that if I add my wife's name to the deeds (they call it transfer of equity) we will need to pay stamp duty on half of the property again. That is mad as I have already paid it. Is that true?