Interest only mortgage

luvchocolate · 9 April 2018 at 5:56PM

Hi I am a regular on the B.R forum but think this question may be answered better on here.
Interest only mortgage taken out in 2007 in my sole name.
This was supposed to be renovated and let.
Partner of this time did nothing and we split up.
Declaration of Trust done in 2009
Now ex partner moves moves in and starts paying mortgage as the D.O.T says ..the B.I belongs to him.

I have to declare B.R in 2012 as the 2 other properties were repossessed with a massive shortfall in 2008.
The loan will become payable when I am 82 I will not be in a position to pay this so I imagine they would take the property,unlikely to be a shortfall as loan is £74,000 and the B.R would take care of that.

I was wondering what would happen if I die before this time with maybe an estate of app £10,000 with funeral to pay for.
Would any remaining funds be taken or would they just take the property back?

Thank you for your patience but felt you needed to know the background.

Thrugelmir · 9 April 2018 at 6:25PM

The executors of your your estate will need to settle any outstanding debts.

ThePants999 · 9 April 2018 at 7:24PM

https://bereavementadvice.org/topics/probate-and-legal/insolvent-estates has the detail you want here. In short:
- firstly, secured creditors can sell the assets on which their debts were secured. If they recover all their monies from the sale, the balance goes into the estate. If they don't, the remaining debts become unsecured.
- secondly, the estate pays for the funeral and administration costs.
- then other debts get paid off (including shortfall on secured debts).

luvchocolate · 9 April 2018 at 7:57PM

ThePants999 wrote: »

https://bereavementadvice.org/topics/probate-and-legal/insolvent-estates has the detail you want here. In short:
- firstly, secured creditors can sell the assets on which their debts were secured. If they recover all their monies from the sale, the balance goes into the estate. If they don't, the remaining debts become unsecured.
- secondly, the estate pays for the funeral and administration costs.
- then other debts get paid off (including shortfall on secured debts).

Thank you thats very helpful and much appreciated
As my ex has the beneficial interest any money over would go to him or his beneficiary.
I wondered if there was a shortfall would the B.R stand up when I have died?
My son says forget it and he will deal with it when the times comes but he has been my rock dealing with it and considering my ex left me with debts of over £200,000 he has lost a lot also.
Thank you

Interest only mortgage

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