Husbands Estate

[Littleoldwinedrinkerme]

Bit of a complicated one, but hoping someone will give me some advice. I paid the deposit on our house but the mortgage was in husbands name. I have a restriction on the property, if I remember correctly it is for the % that I put down (I think 17%). The mortgage has always been paid from my account but for some of that time husband paid the money into that account other times I have paid it. During the recession of 2008 some charges were put onto the property. There is currently about £60,000 of equity in the property. He had a life insurance policy for £55,000. If I use the life insurance to pay off some of the outstanding mortgage I could get a mortgage to cover the remainder and keep our home for me and the children. What happens with the charges? Can I just sell the property to me for what is left on the mortgage? We have no joint accounts and no joint debts.

First you need to establish the actual ownership of the property. It sounds as if you bought it jointly if you put in the deposit.... what do the title deeds say? Was it held as joint owners or as tenants-in-common?

RESTRICTION: Except under an order of the registrar no
disposition by the proprietor of the land or by the proprietor of any
registered charge is to be registered without the consent............

This is all that is on the title register. It was because at the time my name was on another mortgage and I did not earn enough to e on 2 mortgages.

Ok, and you're talking about his Estate so am I right that he has died?

Yes, he has. I don’t know if I have to sell for market value in order to pay off the charges or if I can just sell to myself for what is left on the mortgage.

Please talk to a solicitor/lawyer.

You do really need to speak to a solicitor. There are several issues involved here.... understanding who has ownership and who has responsibility for clearing the mortgage/additional charges are important and it's not clear from what you've said so far.

No you can’t sell the house to yourself. If you’ve inherited it, then you own it. If you did not inherit it, you can’t sell it. The charges stay with the property until they get paid.

Everything was left to me on his death.

How much are the charges?

Unless your late dh made a will leaving the property to someone else, you have inherited it and there is no IHT between spouses. Assuming English law.
The life insurance policy is yours as long as you are the named benificiary.
What sort of mortgage is on the property? Repayment? Interest only?
The obvious thing to do is to speak to the solicitor who drew up the will.
If there is no will, or if your dh made a diy will, you need to see a solicitor asap.
The mortgage company will not talk to you until you provide them with a death certificate.
I am so sorry for your loss.

Speak to the mortgage provider - they ought to have a bereavement department which would be the best option. Very likely you will need to clear the second charges before anyone will consider lending.

Do you know how much the charges were for and whose name they were in? It would probably make more sense for you to pay those off before you pay off the mortgage, but you need to fully understand your position first. Were you joint tenants or tenants in common? Did your husband have a will?

Check if there was insurance on the Mortgage, you might find you don't owe anything on the mortgage.

It is likely that the life insurance policy was taken out to cover the mortgage. If a mortgage is interest only, you have to ensure there is a plan to pay off the capital and usually that would be an insurance policy.
It is important to read the mortgage agreement and establish what kind of mortgage it is.

You cannot sell the property without having the charges released so the debt would either need to be repaid or you would need consent of whoever has the benefit of the charge. This means that when the property is transferred to you under the terms of the will You will own it subject to the charges. You will also be unable to get a mortgage on the property while the charges remain. You need to obtain legal advice to see whether you can establish an equitable interest in the property that takes priority over the charges and get them released on that basis.

Please ask your Mortgage company which policy covered the Mortgage.
MIL found out there was one that cleared it,. Mum had one as well, Mortgage companies always demand one that covers the outstanding amount in the event of a death

Mortgage companies always demand one that covers the outstanding amount in the event of a death
They haven’t been able to demand this for a number of years that’s why there’s so many people without any protection.

I know the bank I work for has a bereavement team who assist with these issues. Try and find out if your bank has such a team, and call them. And I hope you’re okay OP - it must be very hard for you dealing with all this when you’re grieving.

The mortgage was interest only, with very little having been paid off. Found all the legal docs from when he bought the house and the solicitor tried to put a restriction on the land registry to say that the first 17% was mine then split 50/50. Land registry wouldn’t accept this so ended up just saying couldn’t sell without my consent.One of the charges, the company has been dissolved. Life insurance does not cover the mortgage. Everyday I find something a bit more shit out!

I sorry for your loss

If your husband was an employee, would his employer pay a "death in service" amount to the family ?
Sometimes this is also included if an employee pays into a company pension

You may also be eligible for widow's pension. If you are in UK check www.gov.uk

No he was self employed but due to health this year business was not great.