Aged mothers mortgage

Grumpy_chap

Bianchiintenso said:

Age 86, 55k to pay , 8 years to go. House value approx 125k
many thanks

What are the current monthly mortgage payments?
Does she have any other assets / savings?
What is her income?

Bianchiintenso said:

About 15 years ago my mother got into a relationship and he moved in with her. They decided to remortgage to release some money ( I think £50k). 

The new partner died about a year after that, 

because her partner died intestate, his children would have claim on 50% of house if/when it goes to probate, 

Are you saying that the new partner died around 14 years ago?
2010.

If so, someone really needs to take charge of administering the Estate of the partner.  It really won't get any easier as time passes by. 
There will only be more complications piling up - for example, the 50% of the property still owned by the Estate will be accruing CGT liability if the value increases.  That's just one example of how this will get ever more tangled.

Do the children of the partner know he passed away?
Did the children of the partner attend the funeral?
Why are the children of the partner not pursuing the payment of whatever inheritance they might be due?

elsien

Grumpy_chap said:

Bianchiintenso said:

Age 86, 55k to pay , 8 years to go. House value approx 125k
many thanks

What are the current monthly mortgage payments?
Does she have any other assets / savings?
What is her income?

Bianchiintenso said:

About 15 years ago my mother got into a relationship and he moved in with her. They decided to remortgage to release some money ( I think £50k). 

The new partner died about a year after that, 

because her partner died intestate, his children would have claim on 50% of house if/when it goes to probate, 

Are you saying that the new partner died around 14 years ago?
2010.

If so, someone really needs to take charge of administering the Estate of the partner.  It really won't get any easier as time passes by. 
There will only be more complications piling up - for example, the 50% of the property still owned by the Estate will be accruing CGT liability if the value increases.  That's just one example of how this will get ever more tangled.

Do the children of the partner know he passed away?
Did the children of the partner attend the funeral?
Why are the children of the partner not pursuing the payment of whatever inheritance they might be due?

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Grumpy_chap

elsien said:

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Ah, yes, I had missed / crossed with that:

Bianchiintenso said:

knowing the dysfunctional family and their financial background, it's too long a shot unfortunate. There's only one reasonable member, I have thought of contacting her, but it's a can of worms I want to avoid until the last possible minute, so that my mother can live in her home for as long as possible.

Whatever the problems might be, I can't see that failing to even advise the children about their Father's death will supports any eventual compassion / leniency from their side.
Whatever the problems might be, the sooner the Estate is resolved the better.  Time will only make it more difficult.
EDITED to correct in light of the following post.

Bianchiintenso

What are the current monthly mortgage payments?
Does she have any other assets / savings? 
no assets or savings
What is her income?
state pension/entitlements

Are you saying that the new partner died around 14 years ago?
2010.
yes

If so, someone really needs to take charge of administering the Estate of the partner.  It really won't get any easier as time passes by.  
There will only be more complications piling up - for example, the 50% of the property still owned by the Estate will be accruing CGT liability if the value increases.  That's just one example of how this will get ever more tangled.
I agree, but doing that will make it worse for my mother if a sale is forced, my remaining sister and I are more concerned about our mother living her remaining years in the home she made than any inheritance. At the end of the day, his children will get a pleasant surprise if they receive any money when it will be sorted

Do the children of the partner know he passed away?
yes
Did the children of the partner attend the funeral?
yes
Why are the children of the partner not pursuing the payment of whatever inheritance they might be due?
because like everyone else they knew he had no assets and was was living off my mother. They never expected her to wittingly or unwittingly give him half the house after a year.

Bianchiintenso

Grumpy_chap said:

elsien said:

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Ah, yes, I had missed / crossed with that:

Bianchiintenso said:

knowing the dysfunctional family and their financial background, it's too long a shot unfortunate. There's only one reasonable member, I have thought of contacting her, but it's a can of worms I want to avoid until the last possible minute, so that my mother can live in her home for as long as possible.

Whatever the problems might be, I can't see that failing to even advise the children about their Father's death will supports any eventual compassion / leniency from their side.

@elsia
exactly right 
@Grumpy chap
as I said in previous post, in this case doing nothing until absolutely necessary is probably the right thing to do for my mothers mental health and peace of mind as she's not in the best of health

TrickyDicky101

In your position OP I wouldn't tell the children of the ex-partner either. 

You described him as a 'partner' which I assume means your mother wasn't married to him?

Do you have available funds that you can continue to pay the current payments for a period of time to ensure your Mum can continue to reside in the property?  If you can I would document any contributions you make as they form a liability/debt that will ultimately need repaying from her estate when the time comes.  There may not be sufficient cash (once everything liquidated, the secured debt repaid and allocated to the appropriate estate) but that's a risk.  It looks unlikely there will be any inheritance left (which I realise you have said doesn't matter to you) especially since potentially half of any equity is probably due to the ex-partner's children.

housebuyer143

Bianchiintenso said:

Grumpy_chap said:

elsien said:

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Ah, yes, I had missed / crossed with that:

Bianchiintenso said:

knowing the dysfunctional family and their financial background, it's too long a shot unfortunate. There's only one reasonable member, I have thought of contacting her, but it's a can of worms I want to avoid until the last possible minute, so that my mother can live in her home for as long as possible.

Whatever the problems might be, I can't see that failing to even advise the children about their Father's death will supports any eventual compassion / leniency from their side.

@elsia
exactly right 
@Grumpy chap
as I said in previous post, in this case doing nothing until absolutely necessary is probably the right thing to do for my mothers mental health and peace of mind as she's not in the best of health

I actually think this might be the best thing. It will be a huge headache for you when she does die, as if you are the executor you will have a large mess to unwind but while they are in the dark and she is paying the mortgage it seems the status quo will carry on. 
I would never ever expect anyone to give up inheritance out of the goddess of their heart so definitely don't even attempt it. 
If your mother lives another 8 years then would the bank would reposses a 94 year old? Might be different options when the time comes. 

Bianchiintenso

TrickyDicky101 said:

In your position OP I wouldn't tell the children of the ex-partner either. 

You described him as a 'partner' which I assume means your mother wasn't married to him?

Do you have available funds that you can continue to pay the current payments for a period of time to ensure your Mum can continue to reside in the property?  If you can I would document any contributions you make as they form a liability/debt that will ultimately need repaying from her estate when the time comes.  There may not be sufficient cash (once everything liquidated, the secured debt repaid and allocated to the appropriate estate) but that's a risk.  It looks unlikely there will be any inheritance left (which I realise you have said doesn't matter to you) especially since potentially half of any equity is probably due to the ex-partner's children.

Thanks Tricky, Correct they weren't married. That's a good idea to pay/help pay towards mortgage while rates are high and keep a record in case there's anything left over. She will have to go into care at some point and then it'll sort itself out between all outstanding parties. Thanks again all.

Bianchiintenso

housebuyer143 said:

Bianchiintenso said:

Grumpy_chap said:

elsien said:

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Ah, yes, I had missed / crossed with that:

Bianchiintenso said:

knowing the dysfunctional family and their financial background, it's too long a shot unfortunate. There's only one reasonable member, I have thought of contacting her, but it's a can of worms I want to avoid until the last possible minute, so that my mother can live in her home for as long as possible.

Whatever the problems might be, I can't see that failing to even advise the children about their Father's death will supports any eventual compassion / leniency from their side.

@elsia
exactly right 
@Grumpy chap
as I said in previous post, in this case doing nothing until absolutely necessary is probably the right thing to do for my mothers mental health and peace of mind as she's not in the best of health

I actually think this might be the best thing. It will be a huge headache for you when she does die, as if you are the executor you will have a large mess to unwind but while they are in the dark and she is paying the mortgage it seems the status quo will carry on. 
I would never ever expect anyone to give up inheritance out of the goddess of their heart so definitely don't even attempt it. 
If your mother lives another 8 years then would the bank would reposses a 94 year old? Might be different options when the time comes. 

Thanks Housebuyer, it is a big mess, but you're right I think any actions at this moment will make matters even worse

Keep_pedalling

Bianchiintenso said:

housebuyer143 said:

Bianchiintenso said:

Grumpy_chap said:

elsien said:

As per the previous post by the OP, it appears that the children have no clue that he was a part owner in the property.  And it sounds as if the OP's mother had either not understood the implications following his death or has done an ostrich impression until mortgage rates rose to the point it has started making life difficult for her.  

Ah, yes, I had missed / crossed with that:

Bianchiintenso said:

knowing the dysfunctional family and their financial background, it's too long a shot unfortunate. There's only one reasonable member, I have thought of contacting her, but it's a can of worms I want to avoid until the last possible minute, so that my mother can live in her home for as long as possible.

Whatever the problems might be, I can't see that failing to even advise the children about their Father's death will supports any eventual compassion / leniency from their side.

@elsia
exactly right 
@Grumpy chap
as I said in previous post, in this case doing nothing until absolutely necessary is probably the right thing to do for my mothers mental health and peace of mind as she's not in the best of health

I actually think this might be the best thing. It will be a huge headache for you when she does die, as if you are the executor you will have a large mess to unwind but while they are in the dark and she is paying the mortgage it seems the status quo will carry on. 
I would never ever expect anyone to give up inheritance out of the goddess of their heart so definitely don't even attempt it. 
If your mother lives another 8 years then would the bank would reposses a 94 year old? Might be different options when the time comes. 

Thanks Housebuyer, it is a big mess, but you're right I think any actions at this moment will make matters even worse

I am not so sure about that, what happens after the mortgage term expires and £55k needs to be found to pay off the mortgage (I am assuming that this is an interest only mortgage), she can’t do that through equity release unless she is the sole owner and selling the property will be very difficult indeed with this complication in place. 

 At the moment it seems their share of equity is about £35k so if there is any way you buy them out now the future is going to be much easier.