Outstanding mortgage on inherited property - sibling incurring increased debt

marie1975 wrote: »

Hello,

I hope you may be able to advise me where I could obtain appropriate guidance for a difficult issue.

Our Dad passed away almost 5 years ago. In his will he left us his small 1 bedroom flat. The property has a mortgage attached which was not paid off as my Dad was not advised to buy life insurance and subsequently was diagnosed with cancer before he realised he needed this insurance.

The mortgage was frozen for a period by the Halifax. We placed the property on the market, unfortunately just at the wrong time. We have had the property on the market for almost 3 years. The property as a result is still in probate (we appointed a probate company to deal with the probate and the account is still with them).

My brother separated from his wife and we agreed he could move into the property on the basis he would pay the utility bills and would start paying the mortgage. This was Oct/Nov 2009. In March 2010 the probate company wrote to my brother & I advising that the Halifax had to start applying charges to the mortgage account unless we could start making regular payments (the mortgage being 26 months in arrears at this point).

It transpired my brother had not being paying the bills.

After discussion we agreed he could remain in the property on proviso he commenced paying utilities and £200 per month off the mortgage with effect from end March 2010.

He wrote to the probate company confirming this. I believe he also met with the Halifax and they agreed they were happy for him to make the payments.

He has lived in the property since while it has remained on the market. He now is preparing to move out and move in with his new partner. As I result we have once again renewed efforts to sell the property, including dropping the price.

In order to work out what the lowest price we could consider is, I asked the probate company to obtain on my behalf, an up to date mortgage statement.

As this point it transpired the account is further in arrears and arrears charges have applied. I ask for clarification why this is the case as to my knowledge all payments had been made.

Skip forward to yesterday, when I received a copy of the mortgage account and speaking with Halifax rep. It transpires that my brother failed to meet all the payments - in some cases paying £170 per month, some £70 and in some months making no payment whatsoever. This incurred regular arrears charges of £35 plus some £120+ 'field agent' charges and charges for letters.

Apparently letters have been issued at various times to the property address and CC'd to probate company as well as agents being sent to the property. Clearly my brother has kept these letters from me and the probate company has not forwarded them on either - despite me being jointly liable for the mortgage.

As a result the mortgage is considerably higher than it should be, and I cannot trust that my brother will make future payments and avoid further charges. He expects me to pay half the mortgage once he moves out - which would be perfectly reasonably had he failed to make the agreed payments while in the property.

I have contacted the probate company for copies of all correspondence they have on file. I have yet to address the matter with my brother as I do not know how best to approach it.

As a mother of a young baby with a partner who has been unemployed since February I am deeply worried about this situation any possible impact on my own mortgage/financial situation.

I would appreciate any guidance whatsoever you can offer, as to whether I can legally oblige my brother to repay this money, or even if you can advise me where I could seek further advice.

I would also like to know whether if the property fails to sell, I can force my brother to sign the property back over to the Halifax.

Thank you in advance,
Marie

It is not possible to pass on a mortgage.

So if the mortgage was not fully paid off on the death of your father, then it was not his flat to dispose of.

The executors of the will are responsible for sorting out this. Normally it has to be resolved within 12 months, else the executors could become personally liable for the interest.

If they can't sell it, the executors should stick it in an auction, (as the Halifax would but charge extortionate legal, admin and associated fees for) and get the best possible price. It'll be sold on the day and completion is usually within 28 days maximum.

More info on the OP's other thread posted elsewhere on this site

http://forums.moneysavingexpert.com/showthread.php?t=4288149