Mortgages

[Denisdiamond]

An unmarried couple have a joint mortgage, but one of the couple dies without leaving a will. The person who dies has a son who is her next of kin. what happens to her share of the mortgage ? Thank you.

[Cloverjo]

I would think that the remaining partner is responsible for paying the mortgage. The onus would not pass to the deceased's son.

[BRIGHT SPARK]

Did life insurance cover the mortgage?

[Old_Geezer]

I suspect it would depend on the terms of the mortgage, not that I know. The lender isn't going to worry who pays, but the agreement will be with those who signed, surely ? In the event of a default the lender can sell the property to get their money back anyway.

Will be interested in the definitive answer though.

[Buenchico]

The mortgage debt will be 'joint and several'. That means that the lender has the right to pursue either or both of the debtors for any outstanding money. So if, for example, the man was to leave his partner (with her remaining in the house) and the mortgage payments fell into arrears, the lender could choose to pursue the non-resident man alone if they thought that he was the one who would have the most money.

Similarly, if one partner ceases to pay their share of the mortgage because they've died, the lender can expect the surviving partner to shoulder the burden of paying the full amount.

If the couple bought the property as 'joint tenants' the whole of the property will automatically belong to the surviving partner (with the deceased partner's son having no claim to any part of it).

If they purchased it as 'tenants in common' the son will acquire ownership of half the house (but with the surviving partner remaining solely responsible for the mortgage repayments).

[Peter Pedant]

Oh God why dont people work this sort of thing out before they die with a will

A joint mortgage as I learnt last week is always linked to a joint ownership of a house. This means the title to the house AND the responisbility for the hmortgage pass to the named survivor and is outside the will or rules of intestacy

BUT a lot of people think they have a joint thingey when in fact they hold it in common. A jointure outside marriage is pretty uncommon - altho I had one with my nephew.

It is straightforward - the joint holder gets the house and the debt and in this bit of the property the next of kin get nothing.

If it is anything like my family they will start quarrelling about he furniture now, the car and so on.

[Denisdiamond]

Thank you all.Much appreciated. Have a good Christmas. X