Will advice

pete_tong1

What happens if you leave a house that still has some mortgage repayments on it to someone who is not related or living with you. Do they still have to pay up the debt on the house or do they have to sell and give the dosh back to the mortgage company ?

Solidgone

O dear...not another potential ill-fated canoeist....?

suzisausage

I thought it was Wii advise and you were on the scrounge!!

LenGlover

I would imagine that the deceased had a mortgage protection policy which should take care of outstanding repayments on death.

Banks (and building societies) used to insist upon it.

thai malaysia addick

I am no expert, but you would normally have a life assurance policy with the mortgage, which would pay that off debt, meaning that the whole house would go to whomever you chose.

PassItToLeaburn

I haven't on mine. Having no dependents and a mortgage on my own I assumed that the house would pass to my next of kin as an asset and the mortgage as a liability, there's a fair chunk of equity in there so I assumed they'd sell the house and pay off the mortgage and spend the difference on my lavish funeral!

StanmoreAddick

[cite]Posted By: pete_tong1[/cite]What happens if you leave a house that still has some mortgage repayments on it to someone who is not related or living with you. Do they still have to pay up the debt on the house or do they have to sell and give the dosh back to the mortgage company ?

The mortgage company will take back the amount needed to settle the mortage upon sale of the property or arrangements will be needed to settle the debt, generally by refinancing in the new owners name

Technically you do not leave a house, generally you leave all your assetts.

PitL- never assume anything will pass to next of kin- make a will! That's the only way to ensure your wishes occur.

PassItToLeaburn

'tis good advice Stanmore, someone else was telling me the same just last week.

Think I will get onto it in January...