Intestate

[exec13]

I have a friend, he is 71yrs old, who`s wife has passed away with no will (Intestate and with no life insurance or mortgage protection).

She dealt with all of their household bills.

After investigation she has left a interest only loan/mortgage of roughly £137,000.00 (in his wife`s name only) although he has contacted them and put the property on hold interest is still being added at around just under £700.00 per month.

She has also left him with around £10,000.00 of other debts.

The property has been valued at £280,000.00.

With the property now passing into his name and not part of his wife`s estate and no other monies available is he still liable for her other debts.

He is looking at possibly equity release, how much would this cost him monthly.

Please dont get this all wrong she was a lovely person and looked after him really well, just did not keep him up to date with the expenses etc.

[atticus]

You have not fully explained the position regarding the property.

I am guessing that the property was owned in joint names, and mortgaged. Is that correct? If so, even though legal title now vests solely in your friend, the property remains charged, which means that the secured debts will need to be paid. Your friend should consult a solicitor, with all documents and information, to verify the position.

[exec13]

Thank you for your reply however I did state that the loan/mortgage was in his wife’s name only surely this changes things.

[atticus]

I did indeed read what you had written. Sorry, but it does not stack up. Is my assumption correct that the property was in joint names, and mortgaged as security for borrowing?

[atticus]

But on what you say - if this is correct - he does not appear to be liable for his late wife's unsecured debts.

[Frank1]

If the lender has security on the property, your friend may be able to pay off the amount owed using equity release which is usually a form of lifetime mortgage.
As he is 71 he should be able to obtain a loan of 45 to 50% of the property value, meaning the existing mortgage should be fully repaid.
He should ensure his lifetime mortgage has a no negative equity guarantee in case he lives to 100 and the property value is then insufficient to repay the mortgage in full.

[exec13]

Atticcus and Frank1 thank you so much for the useful information. Attics the loan/mortgage was in his late wife’s name only not In joint names. Would that mean that this debt solely in her name would also be not payable by him.

[atticus]

I ask again: Is my assumption correct that the property was in joint names, and mortgaged as security for borrowing?

[exec13]

Thank you Atticus the house is not in joint names and is in his late wife’s name only and is an interest only bank loan

[atticus]

Which indicates that the secured debt must be paid before the title to the property can be transferred into your friend's name. There is a possibility that title can be transferred, but subject to the charges/mortgages.

[Frank1]

Sixth para post 1 is incorrect. The property is part of his wife's estate

[HariSeldon]

the house is not in joint names and is in his late wife’s name only and is an interest only bank loan

With the property now passing into his name and not part of his wife`s estate

This doesn't make sense, how is the property not part of his wife`s estate and now passing into his name if the wife had a £137,000 mortgage secured against a property that was in her name only?

Unless there's something you've not told us then the outstanding mortgage has to be paid off before the lender will give permission for the property to be transferred to anyone.