What happens to my tenants when I die?

user1977

mlz1413 said:

user1977 said:

mlz1413 said:

You should have life insurance to cover the mortgages, so they will be paid off on your death.

What would be the point in that? If the executors are selling the properties anyway, they can pay off the mortgages from the sale proceeds.

Life insurance only really makes sense if you've got dependants who will want to continue living in a property.

I believe the lender insists on it 

No, it's been decades since lenders insisted on borrowers having life insurance.

BikingBud

Mortgage lenders usually require insurance to protect the asset, the house, and to cover the rebuild costs so that the asset is always available and can be sold to cover the debt.

But not life insurance as they can recover the debt from the assets within the estate, that might include having to sell the house to generate sufficient funds or relying on insurance to provide the funds.

@FlorayG

 I think I will advise them to see what monetary difference there would be in selling with a tenant in situ. After all, by the time it happens it may be that private rental have become lucrative again!

How does that bit work?

Aren't you putting plans in place now to make it easier for them?

That quote seems to advise them to make a decision based upon the facts that are available after your demise. As executors they are obliged to make the best decisions.