Lifetime mortgage interest charged from death of insured to sale of property

Degge62

With an added complication, 5 months after my mother’s death, of the selling agent, in my view, trying to gazump the market by £20,000 up to £260,000 at the height of the price boom in February 2008. The eventual buyer in April 2009, at what seemed to be the bottom of the fall, gazundered, when signing the contract, by a further £15,000 to £165,000! A prospective buyer had agreed the original asking price, but withdrew for uncertain reasons shortly afterwards.

Has there been any discussion in the financial press or otherwise, in some circumstances, of the level of interest payable during the period when there is no income, from death to sale of property?

Apart from the earlier 5 months, a prospective buyer, at an auction in May 2008, seemed to have made a condition of no negotiation. I recall a gap of about £2,000 at a then asking price of about £214,000. Out of curiosity i observed a later auction when, i think, another auctioneer did suggest negotiation in such circumstances.

I’m interested in knowing whether there is any scope for reducing the interest charge in such cases. Heads they win, and tails they can’t lose! Especially in view of the apparent cause of the initial excessive inflation and so subsequent scale of the fall. And the role of agents?

Thrugelmir

Until the debt is discharged then interest will be charged. That's normal commercial practice. Irrespective of the circumstances. The estate of the deceased in this interest bears the liability.