Interest-only mortgage after death. What would be best to do?

Snowl53

Hi I'm hoping to get some advice as I am just out of university and never experienced anything like this before. 
My dad has an interest-only mortgage.,He has said he is unwell, and wants to sign it over to me, as he has no life insurance to cover anything and no savings, and hoped this would be a way of us getting something.
I think the house was bought at £113k and will have only increased to about a value of £119k if my research is right. 
-I understand that he hasn't paid anything off, hence the insurance-only payments he makes on the mortgage, so is it worth it?
I assume if he sold it he would barely make anything anyway after fees with the small increase in value it may have. 
-I also am not interested in taking the house on myself, as I work in a hospital very far away, and I'm unsure if I would be approved for a mortgage anyway as I am new in my career after university and have no deposit yet. 
-If I was able to take it, would it be worth continuing the interest-only and renting it out?
So, what would be the best thing to do to benefit us and not the mortgage company, if anything? 
Thank you in advance for any responses. 

davidmcn

I doubt you'd be offered an interest-only mortgage. Does anybody other than your dad live in the property? When does the mortgage term end? He'd probably be best asking the current lender for an extension. If there's any equity in the property then you'll eventually get it anyway (less the selling expenses) so is there any rush to transfer title now?

Linton

How much is the mortgage on the house for?  It will have to be paid off by someone - is Dad expecting that someone to be you?
Is this your Dad's home? If it is where will he live?

At first sight it sounds more like the proverbial white elephant than a sensible use of your money.  However let's see the extra information.

tacpot12

What was your dad’s plan to pay off the mortgage? It is probably easiest to follow the plan that is already in place. 

MovingForwards

A property cannot be transferred when there's a mortgage on it.

Would you want to be a landlord with your job? If you do, would you buy this property?

First time buyer perks should not be used for something like this.

I'm sorry for what is happening with your dad, he may live for years, but it's best to let whatever happens and sell the property. If there are no assets and only debts, then walk away as you do not want to deal with an insolvent estate.

If your dad is 'simply' ill, exhausted from work, showing signs of age etc, you need to find out when the mortgage term is up and your dad will need to decide what he will do. Without equity in the property he cannot do equity release to pay the outstanding mortgage off, if he sells he has no money to buy and will need to rent (get him on the council and housing associations waiting lists), need to make sure he is claiming all the benefits he should be.

There's a lot to look into and with limited internet bits hard to cover all angles.