Bank on house deeds because of secured loan. How do we get them off after death of loanee.

Salisburyowl

My father passed away last year. When my mother applied to put the house deeds solely in her name she found Barclays Bank were on the deeds due to a secured loan my father took out. She is willing to pay off his debt but how does she get barclays removed from the deeds?

DCFC79

Salisburyowl said:

My father passed away last year. When my mother applied to put the house deeds solely in her name she found Barclays Bank were on the deeds due to a secured loan my father took out. She is willing to pay off his debt but how does she get barclays removed from the deeds?

Anything left in the estate to pay the loan ?
Well once the loan is paid Barclays is removed from the deeds.

jonesMUFCforever

When the loan is repaid ask Barclays to complete the Land Registry form to take their name off.

sourcrates

OP,

You need to be very careful here, as only unsecured debts die with the debtor.

This means, the deceased's share of the property can be taken into account when paying back debts.

If it is only owned by the deceased, even if other people have use of it, then it can be used to pay off outstanding debts.

So it depends how much is left to pay, and who actually owns the house, as it could be sold to repay the debt if there isn`t sufficiant collatoral elsewere to pay it, if she is willing to pay it, then that`s the safest option, and once paid, either the Land registry, or barclays will remove the legal charge on the house.

You should really seek legal advice on this straight away.

jonesMUFCforever

I think the widow is aware of the debt and is willing to pay it. Whilst technically your post is spot on - in reality and from experience the bank would not make sell the house to repay. They would accept a loan repayment plan or leave the charge on - so in the event of the sale of the house Barclays would get first digs at sale proceeds.

Salisburyowl

Thanks all. She is quite happy to pay off the debt. Its a bit of a sore subject at the moment for her as it came as a big suprise. She's confused though as she was told by a judge that there was no debt to pay. I need to clarify this with her.

jonesMUFCforever

A judge would only become involved if Barclays had taken someone to court to enforce the debt?

Alter_ego

jonesMUFCforever said:

A judge would only become involved if Barclays had taken someone to court to enforce the debt

The judge could be a friend.

MinuteNoodles

Alter_ego said:

The judge could be a friend.

And one whose area of expertise isn't financial or contractual law. In fact it could be a Magistrates Court judge and they're basically a lay person with very minimal legal training.