New Post Advanced Search

Complicated Probate case... sigh

edited 14 June 2019 at 4:05PM in Deaths, Funerals & Probate
127 replies 7.8K views
Adams18Adams18 Forumite
109 posts
edited 14 June 2019 at 4:05PM in Deaths, Funerals & Probate
Hello,

I've posted in another forum about this situation, but from a different angle regarding the assets. Thread title "Inherited Mortgage due to mature... options?"

I live in a family home with my mother who owns 75%. The other 25% used to be owned by my father who passed away two years ago. He also owned the mortgage which is outstanding.

He did have a partner (not legal wife) at time of death who is not my mother.

This partner has laid claim to the 25%, however this 25% is held in a special "trust" and is only accessible in the the triggering events that my mother (75% owned) dies, remarries or the lender forces sale of the property if mortgage is not paid. The partner has laid claim under the 1975 dependents act.

But theoretically speaking the 25% does not form part of the estate of my father, nor does it hold any nominal value as it can't be accessed, not even by myself as the heir.

It's so ridiculously confusing, I've been stressing for two years over it and the mortgage is due to be paid soon on the property.

He had nothing else in his estate other than the 25% which is a charge back to him in the event of triggering events explained above.

Is worth me doing probate? To speak to the land registry about ownership for the beneficial interest? And to speak to the mortgage lender? About paying the mortgage? Or will the lender just accept money from anyone as long as it gets cleared?
«13456713

Replies

  • Adams18 wrote: »
    Hello,

    I've posted in another forum about this situation, but from a different angle regarding the assets. Thread title "Inherited Mortgage due to mature... options?"

    I live in a family home with my mother who owns 75%. The other 25% used to be owned by my father who passed away two years ago. He also owned the mortgage which is outstanding.

    He did have a partner (not legal wife) at time of death who is not my mother.

    This partner has laid claim to the 25%, however this 25% is held in a special "trust" and is only accessible in the the triggering events that my mother (75% owned) dies, remarries or the lender forces sale of the property if mortgage is not paid. The partner has laid claim under the 1975 dependents act.

    But theoretically speaking the 25% does not form part of the estate of my father, nor does it hold any nominal value as it can't be accessed, not even by myself as the heir.

    It's so ridiculously confusing, I've been stressing for two years over it and the mortgage is due to be paid soon on the property.

    He had nothing else in his estate other than the 25% which is a charge back to him in the event of triggering events explained above.

    Is worth me doing probate? To speak to the land registry about ownership for the beneficial interest? And to speak to the mortgage lender? About paying the mortgage? Or will the lender just accept money from anyone as long as it gets cleared?
    You paid for professional advice urgently. This is not a DIY job..
  • Adams18Adams18 Forumite
    109 posts
    You paid for professional advice urgently. This is not a DIY job..

    I've paid thousands upon thousands on professionals, and spent last two years trying to solve it :(

    Don't seem to have got any closer to a solution. Looking for fresh perspectives.

    Lawyers happily take your money, rarely deliver value. And I've tried plenty.
  • Adams18 wrote: »
    I've paid thousands upon thousands on professionals, and spent last two years trying to solve it :(

    Don't seem to have got any closer to a solution. Looking for fresh perspectives.

    Lawyers happily take your money, rarely deliver value. And I've tried plenty.
    What make you think anyone here do better? Find another solicitor.
  • LintonLinton Forumite
    12.6K posts
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    ✭✭✭✭✭
    Your description of the situation seems odd. Mortgages aren’t inherited. As far as I know when the borrower dies the mortgage needs to be paid off either by selling the property or someone else getting a mortgage in their own name. Does the mortgage company know that your father has died?

    I don’t believe that you can get a mortgage for part of a house. How would the lender get their money back if payments stopped?

    As Yorkshireman says you need good professional advice to fully understand and resolve the situation. You have no other option.
  • Tom99Tom99 Forumite
    5.4K posts
    1,000 Posts Second Anniversary
    ✭✭✭✭
    Was this trust already set up before your father died or is it a will trust?
    How much is the house worth relative to the mortgage?
    Who has been paying the mortgage for the past 2 yrs?
  • getmore4lessgetmore4less Forumite
    39.5K posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
  • getmore4lessgetmore4less Forumite
    39.5K posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Reading both threads.

    The jist of it seem to be to be

    There was a financial settlement when parents divorced that created a debt(25%) against the property that had to be repaid when the trigger events happen.

    The parents remained joint legal owners with a mortgage in the father name.

    What is not clear is if this is offset by the mortgage debt or not.

    That debt is an asset of the fathers estate.

    Unless the court order covered the death of the father it would seem that this debt just remains in limbo till the triggers release it.


    Father died intestate, divorced/not remarried, children inherit.

    Any claim would be to inherit the debt owed to the estate.

    Then it would need a forced sale if the trigger events do not happen.


    Also seems the legal ownership has already been changed to just the mother and the mortgage company want their money
  • Tom99Tom99 Forumite
    5.4K posts
    1,000 Posts Second Anniversary
    ✭✭✭✭
    Adams18 wrote: »
    Is worth me doing probate? To speak to the land registry about ownership for the beneficial interest? And to speak to the mortgage lender? About paying the mortgage? Or will the lender just accept money from anyone as long as it gets cleared?
    The Land Reg deal with the legal ownership so I doubt they can help you.
    It seems your father's estate consists of a reversionary interest in the house at some future date less a £80k debt.
    Since your mother as joint owner would have been party to this £80k mortgage can it be established without doubt that the debt is entirely your father's?
    Somehow the mortgage will need to be dealt with.
    If you apply for probate you will claim inheritance of your fathers estate. Would that then enable you to become a joint legal owner with you mother and pay off the mortgage?
    Has the ex-partner made a formal claim? Has that claim put any restrictions on your father's estate?
    I can't see how applying for probate puts you in any worse situation that you are at the moment.
  • Manxman_in_exileManxman_in_exile Forumite
    4.1K posts
    Sixth Anniversary 1,000 Posts Name Dropper
    ✭✭✭✭
    Reading both threads.

    The jist of it seem to be to be

    There was a financial settlement when parents divorced that created a debt(25%) against the property that had to be repaid when the trigger events happen.

    The parents remained joint legal owners with a mortgage in the father name.

    What is not clear is if this is offset by the mortgage debt or not.

    That debt is an asset of the fathers estate.

    Unless the court order covered the death of the father it would seem that this debt just remains in limbo till the triggers release it.


    Father died intestate, divorced/not remarried, children inherit.

    Any claim would be to inherit the debt owed to the estate.

    Then it would need a forced sale if the trigger events do not happen.


    Also seems the legal ownership has already been changed to just the mother and the mortgage company want their money


    I'm probably being thick, but wouldn't it be very unusual for the divorce order from 20 years ago to provide for the mother's death, but not the father's?


    That seems bonkers to me, but I know nothing about divorce law.


    Perhaps the OP can post the relevant wording as requested in the other thread.
  • getmore4lessgetmore4less Forumite
    39.5K posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    I'm probably being thick, but wouldn't it be very unusual for the divorce order from 20 years ago to provide for the mother's death, but not the father's?


    That seems bonkers to me, but I know nothing about divorce law.


    Perhaps the OP can post the relevant wording as requested in the other thread.

    I am not surprised as this was to do with the triggers for the occupation of the property.

    The father was not living in the place.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support