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Death of husband who is part of joint mortgages

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JM1016JM1016 Forumite
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Photogenic First Post
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Looking for some advice on mortgages following death of my husband.  We are both named on mortgages, and unfortunately there was no life insurance. There is a good amount of equity in both properties but I am concerned that the mortgage companies may not allow me to continue with a mortgage as a widowed person with one income.  I have accepted I will probably need to sell one of the properties to fund the other but will still be left with a considerable shortfall that will need to be mortgaged which I believe I will be able to accommodate on my single wage. What rights do I have and what duty of care do the mortgage companies have if any to ensure I do not become homeless? Can they force me to sell or refuse me a mortgage under these circumstances? Also any advice on the tax I might have to pay on selling considering I have 2 properties please. Thanks

Replies

  • getmore4lessgetmore4less Forumite
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    Joint mortgage just carry on as they were with a name removed.

    The real issue is can you make the payments if not then you need to discuss a plan with the lender(s)

    Not enough(any) details on the properties to be able to comment on the tax on disposal situation.



  • theoreticatheoretica Forumite
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    I am sorry for your loss.  Realistically, so long as you can make the payments the mortgage company is not going to take any drastic action, but you may find yourself unable to change provider for a better deal.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Keep_pedallingKeep_pedalling Forumite
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    It sounds like you will have little choice but to sell one house. I would look at selling which ever one that will leave you with the smallest mortgage payments, but beware that selling the one that is not your main residence could leave you facing a capital gains liability. Who is living in the second house?

    You should speak to your lenders ASAP, they should give you time to get your self sorted out.
  • macmanmacman Forumite
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    What was the ownership basis of each property. each 50/50, joint tenants, tenants in common?
    A lot more info would be needed to give you a full answer.
    No free lunch, and no free laptop ;)
  • JM1016JM1016 Forumite
    2 posts
    Photogenic First Post
    MoneySaving Newbie
    Hi thanks everyone for your advice.  It was an odd situation that may seem strange to some  but I lived in one house and he lived in the other. We are both 50/50 joint tenants. I will most likely move into the house my husband was living in though if finances allow.
  • getmore4lessgetmore4less Forumite
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    Might open up a CGT issues and normally married couples can only have 1 main residence for residence relief.

    Something to look into.

  • p00hsticksp00hsticks Forumite
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    xylophone said:

    That link is rather out of date, as it mentions both letting relief (no longer applicable) and a three year (now 9 month) period immediately before selling
  • edited 8 April at 5:13PM
    TBagpussTBagpuss Forumite
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    edited 8 April at 5:13PM
    I'm sorry for your loss. 

    The mortgage company will be looking at whether you can pay the mortgage, so the first question is whether you can afford the payments on either or both. IF you can't afford both, prioritize the payments on the property you want to live in, and put the other on the market as soon as possible, and let the lender know that you have done so. If they can see that you are taking steps to sell the property and clear the mortgage they are unlikely to rush to repossess. You may even be able to negotiate a short payment holiday.

    The lender is unlikely to have any issue as long as you are paying the monthly payments. 


    All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)
  • xylophonexylophone Forumite
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    That link is rather out of date, as it mentions both letting relief (no longer applicable) and a three year (now 9 month) period immediately before selling

    Thanks - the OP still needs to take into account the PPR rules re CGT.

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