Shared ownership help

Helsbels1987

Hi I am buying a shared ownership property, I am single and wondering what happens if I was to die, would the rent payments be automatically passed onto my parents as my next of kin? I believe there is no point of getting life insurance as I have no children is this correct? Is there any policy I can take out to stop my parents having to pay on the property? Thank you 

Lomast

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

SavingPennies_2

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

Really... because I don't have any, I would only bother if I had a partner or children so they wouldn't be burdened with sole responsibility of the mortgage should anything happen to me.

Slithery

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

That hasn't been the case for years now.

elsien

The lease would pass onto whoever you left your estate to in your will, or in the absence of a will whoever inherits your share via the intestacy laws. 

It does seem to vary between organisations though so it’s a specific question you might want to ask the housing association about their expectations and timescales. 

https://www.insidehousing.co.uk/insight/insight/how-bereaved-families-are-being-stung-by-the-costs-of-shared-ownership-66830

Lomast

Slithery said:

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

That hasn't been the case for years now.

Hmm my mortgage adviser must of been telling me porkies then 

SavingPennies_2

Lomast said:

Slithery said:

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

That hasn't been the case for years now.

Hmm my mortgage adviser must of been telling me porkies then 

They probably carefully worded it to make you think you need it as they will def try to sell it to you but it's not required. They may require you to have buildings insurance though.

Lomast

Thanks that's useful to know for next time

london21

Lomast said:

Slithery said:

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

That hasn't been the case for years now.

Hmm my mortgage adviser must of been telling me porkies then 

It is not compulsory.

Your mortgage adviser likely gets a commission from it. 

Kylie_R

I have a shared ownership property and it’s a condition of the mortgage that I have life insurance for the cost of the mortgage. 

kingstreet

SavingPennies_2 said:

Lomast said:

Slithery said:

Lomast said:

If you are getting a mortgage then they will insist you have adequate life insurance in place anyway

That hasn't been the case for years now.

Hmm my mortgage adviser must of been telling me porkies then 

They probably carefully worded it to make you think you need it as they will def try to sell it to you but it's not required. They may require you to have buildings insurance though.

The building is covered by the freeholder under shared ownership as the property is leasehold. The cost is passed on via a service charge.