Can Someone Inherit A Mortgage Debt?

[AuntPollyGrey]

A man dies owing £70k on a BTL that is now in negative equity of around £20k. His family home is worth around £150K, Mortgage free, and owned as Tenant in common with his son. The Estate has little cash just enough to pay for a funeral and associated legal costs. His son is sole beneficiary of his father’s Estate.
Does a beneficiary inherit a mortgage debt not associated with his family home?
Would the Son have to sell the family home to finance the BTL mortgage repayment when it becomes due (in around 4 years’ time)
Or is it likely the mortgage Company would cut its losses and repossess the BTL property, auction it off, then write off the remaining debt?
Hypothetical at the moment but need to give someone constructive advice and point them in the right direction for professional advice. Many Thanks.

[AuntPollyGrey]

Thank you for all the answers. I'm not giving a best answer as all have been gratefully received and will be passed on to my relative.

[ubasses]

Basically, yes, if he died before the mortgage was repaid, the Mortgagee should give the Estate time to sell the property (interest would still be accruing). The selling Solicitor would then repay the Mortgagee from the sale funds, and the Estate would repay the remainder from the Insurance Policy. If the property did not sell within a reasonable time (defined by the Mortgagee) they could then repossess and sell at a reduced price. With negative equity though this really wouldn't be to their advantage.

There is no reason why he can't insure for a larger sum to cover any contingencies, and any surplus will go to the Estate.

[AuntPollyGrey]

Thankyou Urbasses

[soxmis_sid]

Only my tuppence worth, but if they are tenants in common surely the home cannot be forcibly sold to recover the debt. The debt would have to be paid only when the son sells the property of his own free will?

[AuntPollyGrey]

Its the opposite actually. If one of the co-owners dies and they are Joint Tenants then the deceased's half automatically goes to the surviving owner. If they are Tenants in Common then the deceased's half of the property becomes part of his estate, therefore liable to be counted as an 'asset' and liquidated if the Estate has more debt than assets. How they would go about this, and evict a person who legally owns part of the house, is beyond me, its just what I've read.