Land Registry and mortgage

kris80

Hi
some understanding and help needed. I lived with mum at the address where she had an outstanding mortgage. Currently I am applying for a mortgage to pay outstanding balance which was left. However mum had 2 loans that are on the land registry. Will this stop the sale of the house?

badger09

kris80 said:

Hi
some understanding and help needed. I lived with mum at the address where she had an outstanding mortgage. Currently I am applying for a mortgage to pay outstanding balance which was left. However mum had 2 loans that are on the land registry. Will this stop the sale of the house?

I assume you mean mum's loans were secured on her property by way of a charge. In which case, they will have to be settled,  like mum's mortgage, before the property can be transferred to you, or sold to someone else. 

It would be easier if you continue with your previous thread.
https://forums.moneysavingexpert.com/discussion/6140201/inheritance-tax-and-life-insurance#latest
Did you ever answer the question about being your mum's sole beneficiary?

kris80

Yes I think I am. I am applying for letters of administration. The thing was that I have been given a mortgage for the amount outstanding on the mortgage.

badger09

kris80 said:

Yes I think I am. I am applying for letters of administration. The thing was that I have been given a mortgage for the amount outstanding on the mortgage.

Either you are, or you are not. Which is it?
What do you think is going to happen to the 2 loans?

kris80

Sorry, yes they are mums loans. I am applying for letters of administration I have siblings but because I’ve always lived at the house they not interested they just want the house to stay in the family. 
I am thinking that because the loans are on land registry I will need to apply for a higher mortgage to pay for them.

xylophone

Yes I think I am.

There was no will - your mother was intestate.  See

https://www.gov.uk/inherits-someone-dies-without-will regarding inheritance.

You say that your siblings are not interested but they should formally renounce any legal right?

You have checked at the LR and seen the Mortgagee's charge on the property.

Have you advised the companies/persons who have the benefit of the other charges?

kris80

Thanks. I have checked land registry and they are there. Yes I have notified the companies and arranged payments as the loans were mine and Mum was guarantor. 

getmore4less

Anything else you need to drip feed?
The loans are yours and mother was only a guarantor then you should have been paying them already no need to make any new arrangements.
You won't be able to change the ownership and get the new mortgage without doing something with the guarantor charges.

Your mortgage lender may not be happy transfering them or having new ones, may have been better to just get a bigger mortgage.
Are you using a mortgage broker for this or going it alone?

kris80

What do you mean by drip feed? The loans where both of ours. 
I have spoken to some brokers who are happy to help but I’ve only just realised the charges so I before I spoke to them again I was asking for some advise. 
Adding extra onto the mortgage am thinking would be better because these ccjs will then be satisfied.

xylophone

 these ccjs

Do you mean that your mother borrowed money (which was for use) and the loan went into arrears?

The creditors sought repayment through the courts and took a second and third charge against the property?

You need to borrow enough to repay the mortgage and the creditors?

Linton

I am confused....

 - It is suggested that you have siblings and there was no will.  In that case you and your siblings are entitled to an equal share of your mother's estate.  If they don't want the money then they need to formally say so.

 - If there were no personal debts and no other assets in the estate each sibling would get their % of the house after the mortgage had been paid off

 - If the debts were your mother's they would also have to be paid off before the money was split between the siblings.

 - However if the debts were actually yours it could be argued that you should pay them off out of your share of the inheritance.  It does not seem fair for the siblings to be disadvantaged by your debts.