A mortgage does not disappear because the owner has died. The debt remains attached to the estate and needs to be dealt with. The lender should be informed, and the executor needs to understand the balance, ongoing…
A mortgage does not disappear because the owner has died. The debt remains attached to the estate and needs to be dealt with. The lender should be informed, and the executor needs to understand the balance, ongoing payments, and whether the property can or should be sold.
Some families assume the lender will force an immediate sale. Others assume they can ignore the mortgage until probate is complete. Neither is a good idea. Early contact and a clear plan are far better.
If there is life cover linked to the mortgage, that also needs checking promptly.
Related reading
- How to sell a probate property: a clear step-by-step guide for executors and familiesHow to sell a probate property: a clear step-by-step guide for executors and families/probate-guides/how-to-sell-a-probate-property/
- Inheritance Tax — do we owe it, and how much?Inheritance Tax — do we owe it, and how much?/knowledge-hub/inheritance-tax-on-a-probate-property/
- Do I pay tax when selling a probate property?Do I pay tax when selling a probate property?/knowledge-hub/capital-gains-tax-on-a-probate-property-sale/
- Who pays for the property costs while we wait?Who pays for the property costs while we wait?/knowledge-hub/who-pays-the-bills-on-a-probate-property/
- Can we use the property sale proceeds to pay Inheritance Tax before probate is granted?Can we use the property sale proceeds to pay Inheritance Tax before probate is granted?/knowledge-hub/using-sale-proceeds-to-pay-inheritance-tax-before-probate/
- Do we still have to pay council tax on an empty probate property?Do we still have to pay council tax on an empty probate property?/knowledge-hub/does-an-empty-probate-property-pay-council-tax/
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