Death, property and debt


T

Todd

A member of the family has died leaving a number of debts and had no life
insurance on the property whose name it was in. He also left no will. He
has a wife and children.

The mortgage was interest only and from what I can see, the current resale
value of the house is about the same amount as the outstanding mortgage. We
haven't been able to find any details of any other investment vehicle for
which the capital part of the mortgage wouuld have been settled.

Speaking plainly (with some level of detail) if you can please, what is the
likely outcome for his surviving wife and children?

Thank you.
 
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T

Troy Steadman

A member of the family has died leaving a number of debts and had no life
insurance on the property whose name it was in.  He also left no will. He
has a wife and children.

The mortgage was interest only and from what I can see, the current resale
value of the house is about the same amount as the outstanding mortgage. We
haven't been able to find any details of any other investment vehicle for
which the capital part of the mortgage wouuld have been settled.

Speaking plainly (with some level of detail) if you can please, what is the
likely outcome for his surviving wife and children?

Thank you.
It would be worth posting this to uk.legal.moderated as well as here.
 
E

Eric Jones

A member of the family has died leaving a number of debts and had no life
insurance on the property whose name it was in. He also left no will. He
has a wife and children.

The mortgage was interest only and from what I can see, the current resale
value of the house is about the same amount as the outstanding mortgage.
We
haven't been able to find any details of any other investment vehicle for
which the capital part of the mortgage wouuld have been settled.

Speaking plainly (with some level of detail) if you can please, what is
the
likely outcome for his surviving wife and children?

Thank you.
It would be worth posting this to uk.legal.moderated as well as here.

If the widow cannot raise a mortgage then they will have either to downsize
or sell and rent.
 
G

GSV Three Minds in a Can

from the wonderful said:
It would be worth posting this to uk.legal.moderated as well as here.

If the widow cannot raise a mortgage then they will have either to downsize
or sell and rent.
I think the issue is whether the other parties who are owed money
can/will try to force a sale of the house to release any equity (yes, I
know the OP said there probably wasn't any, but that's his opinion, not
theirs) to cover the debts to them.

Of course I'm old enough that the concept of a mortgage without matching
life cover just boggles my mind anyway. Never mind the concept of having
a family without some provision for looking after them.

I guess the first step would be to discuss with the mortgage company to
see if they are actually sitting on a policy nobody knows about, but it
doesn't sound likely. It's also fairly essential to know exactly how the
house ownership is written (single name, joint tenants, tenants in
common, or what).
 
A

Andy Pandy

Todd said:
A member of the family has died leaving a number of debts and had no life
insurance on the property whose name it was in. He also left no will. He
has a wife and children.

The mortgage was interest only and from what I can see, the current resale
value of the house is about the same amount as the outstanding mortgage. We
haven't been able to find any details of any other investment vehicle for
which the capital part of the mortgage wouuld have been settled.

Speaking plainly (with some level of detail) if you can please, what is the
likely outcome for his surviving wife and children?
You might find this site useful:

http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/BenefitsAndMoney/index.htm
 
R

Ronald Raygun

GSV said:
Of course I'm old enough that the concept of a mortgage without matching
life cover just boggles my mind anyway. Never mind the concept of having
a family without some provision for looking after them.
What has the world come to if one has to be "old" to be boggled by this?
I guess the first step would be to discuss with the mortgage company to
see if they are actually sitting on a policy nobody knows about, but it
doesn't sound likely.
Doesn't it? I thought that lenders generally insist on life cover in
cases where there are dependants, precisely because they don't like
the bad press resulting from having to kick them out into the street.

I suspect what has happened is that the chap raised the mortgage while
single, and the wife and kids came along later, and the lender wasn't
told.
It's also fairly essential to know exactly how the
house ownership is written (single name, joint tenants, tenants in
common, or what).
Quite. I expect it'll be single name (his).

She should get herself down to her nearest CAB pdq. They're bound to
have a fair bit of experience with this kind of thing.
 
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C

Colin Wilson

A member of the family has died leaving a number of debts and had no life
insurance on the property whose name it was in. He also left no will. He
has a wife and children.
My first response is that i'd be surprised if he didn't have life
cover, as it's often a requirement of a mortgage.
 
A

Andy Pandy

Ronald Raygun said:
Doesn't it? I thought that lenders generally insist on life cover in
cases where there are dependants, precisely because they don't like
the bad press resulting from having to kick them out into the
street.

Nope. I took my current mortgage out when I had a wife and child, with
no life insurance, and interest only with no repayment vehicle. AIRI
they didn't even try to sell me life insurance.
 
C

Colin Wilson

Nope. I took my current mortgage out when I had a wife and child, with
no life insurance, and interest only with no repayment vehicle. AIRI
they didn't even try to sell me life insurance.
And they wonder why they've got a problem :-}
(not with you obviously, but in general)
 
G

GSV Three Minds in a Can

Bitstring <[email protected]>, from the
wonderful person Colin Wilson
My first response is that i'd be surprised if he didn't have life
cover, as it's often a requirement of a mortgage.
Also provided by most decent employers, assuming he was employed.
 
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T

Todd

I think the issue is whether the other parties who are owed money
can/will try to force a sale of the house to release any equity (yes, I
know the OP said there probably wasn't any, but that's his opinion, not
theirs) to cover the debts to them.

Of course I'm old enough that the concept of a mortgage without matching
life cover just boggles my mind anyway. Never mind the concept of having
a family without some provision for looking after them.
Quite. This is what has dumbfounded us beyond belief, to say the least.
I guess the first step would be to discuss with the mortgage company to
see if they are actually sitting on a policy nobody knows about, but it
doesn't sound likely. It's also fairly essential to know exactly how the
house ownership is written (single name, joint tenants, tenants in
common, or what).
They have told us that there is no such policy, at least not with them -
although we are currently awaiting banking documents to see if other
payments were being made elsewhere.

The mortgage was in his name only - I'm not sure if that is what you mean
though, when you say how the house ownership is written...
 
A

Andy Pandy

"Colin Wilson" <[email protected]>
wrote in message
And they wonder why they've got a problem :-}
(not with you obviously, but in general)
They were very thorough checking salary details, which is the main
reason for people getting into difficulty (dodgy brokers encouraging
people to lie about their income and lenders not checking). But I was
surprised they didn't ask for any proof of a repayment vehicle. My
company scheme pension/death benefit scheme was more than adequate to
cover the mortgage but they didn't ask for any details/proof of this
either.
 
G

GSV Three Minds in a Can

Bitstring <[email protected]>, from the wonderful person
Todd <[email protected]> said
The mortgage was in his name only - I'm not sure if that is what you mean
though, when you say how the house ownership is written...
'Who does the land registry think is the owner of the property' (if it
is registered with them - depends when it was bought), otherwise 'whose
name is on the deeds'.
 
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T

Todd

'Who does the land registry think is the owner of the property' (if it
is registered with them - depends when it was bought), otherwise 'whose
name is on the deeds'.
Ah, OK - not sure - I suppose we'll have to find out...

Thanks for the clarification.
 

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