interest only mortgage

[bodyboarder]

interest only mortgage .... we have a retirement plan mortgage and understood that when we are both dead the property would be sold by the executors of our will, the capital paid off and the balance.. which currently is approx 50% of the market value paid to beneficiaries. i have now been advised by a friend that in fact the mortgage company would sell the property, and that they could sell it at auction for a price that would cover their repayment, and that they are under no obligation to sell at market value. Can anyone advise on this, and if that is common practise are there any steps i can take to ensure that that the property is sold at a reasonable value?

[Old_Geezer]

No expert but unless there is a contract to say otherwise I'd suspect the mortgage company would have a claim on the estate but that it would be the executors who'd remain responsible for tying up the loose ends and ensuring the mortgage company was paid in a reasonable time.

I'm sure some legal eagle type will be along to clarify in a moment though.

[factor-fiction]

I suggest the first step is to ask the mortgage company.
I'm not sure what a 'retirement plan' mortgage is- is it some form of equity release scheme?
Is there any sort of life policy (endowment) linked to the mortgage

[dzug2]

Selling at auction is by definition one way of establishing actual market value

How quickly the company would seek to do this is another matter