Mortgage - after death
bob_fossil
Posts: 797 Forum Member
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Probably a strange question, but...
I have a mortgage on my own - I have no partner/children etc.
Probably a question for a solicitor, but what happens if/when I die?
I'd hate to think my relatives (parents/siblings) are lumped with the place and the mortgage. What exactly is the deal regarding this?
Anyone know?
I have a mortgage on my own - I have no partner/children etc.
Probably a question for a solicitor, but what happens if/when I die?
I'd hate to think my relatives (parents/siblings) are lumped with the place and the mortgage. What exactly is the deal regarding this?
Anyone know?
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Comments
If not then get one .......... Quick ..
Edit to add ........... You should also have a will .
I'm so bad with this kind of thing
Agreed - if it's a "drop dead" policy it shouldn't be expensive.
LOL
Only you know what sum you are assured for and how much your Mortgage is ........... You do the Maths .........
Yup ! ........... Cheap as chips and his Family will have no worries about paying his Mortgage whilst they put his House on the Market .............
hehe thanks. I'll look into what my life insurance deal is. I just didn't know what happened, or what the basic 'system' was.
I was just thinking earlier 'what if' etc.
You die, mortgage gets paid off. Nowt extra.
If OH dies I'm cushty. And visa versa. I have an additional life insurance policy so if I die OH can sit on his arse and morn for about four years.
If you have this protection, why would you need any other life insurance if you have no dependents?
In the event of your death the house would be part of your estate and any outstanding mortgage would be paid by the insurance company.
If you died whilst you still have a mortgage (or any other debts) then your house and assets would be sold by the executor to pay back the debts and anything left over would then be distributed / paid out to whoever you have specified in your will (or your parents if you don't have a will). If the value of your assets didn't cover all your debts then the balance would be written off.
I know this is a morbid topic, but it's just something I never thought about. Not had my mortgage that long and I didn't even think about this kind of thing :rolleyes:
Thanks for all the answers by the way!
However, you really should get a will written as this means you can decide who you would like to be the Executor (i.e. the person or people who would be responsible for wrapping up your affairs) but more importantly can decide if you want to leave anything to other people. You may want to leave something to a good friend or your siblings for instance.
It's up to you whether you go with a 'professional' executor like a solicitor or accountant (who will charge) or choose some family or friends.
If all you are concerned about is them not being left with your debt, then be assured that in law no one can be held responsible for another person's debts unless they are party to that debt, so insurance wouldn't be required. However, if you forsee your circumstances changing in the future, where you may want to take life assurance remember, this gets more expensive the older you get and you may (hopefully not) incur some illness which prevents you from taking it out or considerably hikes the cost.
Depends what you mean by hassle - they'd inherit the house, they don't inherit the debt (i.e. they don't need to pick up the repayments for the mortgage). If they don't actually want the house then they'd sell it, pay off the balance of your mortgage, and keep any money left over.
I wouldn't waste my money on the insurance tbh. It's not like you'll get any benefit!
The house would be sold by the executor of your estate, the mortgage and other expenses paid from the proceeds, and the balance distributed according to your will, or accoring to the intestacy rules if you haven't made a will.
The mortgage payments would cease on your death, but interest would still accrue on the capital outstanding.
They wouldn't have to.
But better to sell your Body when dead than to do so while still alive , eh sweety ?
It never has been on any of mine, but then I last took out a mortgage in 1993. Things may have changed.
They might want to whilst the House is on the Market is what I said and what meant , to prevent the highlighted bits above
If you haven't got a will, your next of kin would have to deal with it. They could appoint a solicitor to deal with it all though.
Best to make a will and appoint an executor if you don't want them to have hassle. Check how much they charge - some of them are a rip off.
I would only insure if somebody was actually going to be in financial trouble when I died.
Nope, none of my last three lenders have required life insurance.
It may depend on how much equity you would have as to whether it is required. Obviously the less equity, the more incentive for the mortgage company to require insurance.
It seems to me the OP cares about who he is leaving behind and surely would want to have enough money left to them to cover his funeral costs at least ........... By having his mortgage paid off this will ensure he does