Inheriting a mortgaged property

bluedanube_1982

Hi, 
I'm about to inherit my Fathers house, it has  14k remaining on the mortgage, the house itself has an estimated value of between 100k-140k not  sure for certain yet. As I have been living there for 10 years, would I still need be to be approved by Lloyds to takeover the payments on the mortgage, I've heard it suggested that I can argue that I have lived in the home  for the duration of the existing mortgage, and made  regular monthly  payments towards the upkeep of the home, m I would very grateful for any advice.......there were no savings or insurance that could be used to settle the mortgage.

penners324

You need to remortgage to clear the Lloyds mortgage. So the mortgage is in your name.

user1977

bluedanube_1982 said:

I've heard it suggested 

Where have you heard this? I would expect lenders to apply their usual criteria about affordability etc.

macman

You may have lived in it, but you are neither a tenant or an owner (yet). So the original mortgage must be cleared before estate can transfer it into your ownership.
You have no legal right to occupy the property until then.

molerat

You can not inherit the whole property only the equity held in it and to release that equity into your name you need to settle the existing mortgage either by getting a mortgage yourself or by coming to some sort of arrangement with Lloyds, you need to open discussions with Lloyds starting on the basis that you have no rights to simply take over the payments.  Whatever you have done or paid for makes no difference to the equity held in the property or amount mortgaged.  Is there a reason you are likely not to be approved for a £14K mortgage with 90+% equity

bluedanube_1982

Is there any way of my just continuing to make the payment on the existing mortgage rather than having to make a mortgage application?

penners324

None that will be acceptable to Lloyds

bluedanube_1982

molerat said:

You can not inherit the whole property only the equity held in it and to release that equity into your name you need to settle the existing mortgage either by getting a mortgage yourself or by coming to some sort of arrangement with Lloyds, you need to open discussions with Lloyds starting on the basis that you have no rights to simply take over the payments.  Whatever you have done or paid for makes no difference to the equity held in the property or amount mortgaged.  Is there a reason you are likely not to be approved for a £14K mortgage with 90+% equity

The only reason being, that I have some debt myself, plus my income is only 21k P.A  , my credit record itself is fine, no missed payments, CCj's etc, I'm just worried about their affordability checks, 

theoretica

what you may be thinking of is that Lloyds bereavement department will let the current mortgage run while the estate is sorted out, and probate acquired.  But not for more than 18 months, and they would not allow the property ownership to be changed to you.

bluedanube_1982

theoretica said:

what you may be thinking of is that Lloyds bereavement department will let the current mortgage run while the estate is sorted out, and probate acquired.  But not for more than 18 months, and they would not allow the property ownership to be changed to you.

But to be honest a period of 12 to 18 months would give me ample time to try to raise the money to pay off remaining the  14k mortgage, surely they couldn't move to repossess the house for the sake of 14k, I can continue to make the payments even during the period before probate is acquired,I fully intend to do that if possible.

theoretica

Have you seen the bereavement guide here https://www.lloydsbank.com/help-guidance/life-events/bereavement.html