Is the mortgage in joint names?
If so, then presumably the estate assumes the deceased's (share of the) outstanding debt?
In the absence of any contract stating otherwise that would sound correct to me. Joint mortgage holders are "jointly and severally liable" for the loan. If one reneges on paying it then the other is responsible for it.Google seems to be saying the remaining mortgagee!!
For an investment property? I wouldn't have thought so?.Generally mortgage lenders will insist on life cover being in place, so check that out as well
Not a requirement for an investment property, just for people's PPRs.Generally mortgage lenders will insist on life cover being in place, so check that out as well
It used at least be a requirement when two or more unrelated partners invested together. I know because a friend of my own died suddenly a decade or so ago having earlier bought a house with another friend. The mortgage life cover averted what would have been an unholy mess as property values were then on the floor.Not a requirement for an investment property, just for people's PPRs.
It's a good requirement to have, even if they are related. A lot of investment properties don't wash their own faces when tax is added in. Add in that a death could mean the loss of an income in a family, it's better to have mortgage protection, which is fairly cheap.It used at least be a requirement when two or more unrelated partners invested together. I know because a friend of my own died suddenly a decade or so ago having earlier bought a house with another friend. The mortgage life cover averted what would have been an unholy mess as property values were then on the floor.
Really? I thought that it was a legal or at least regulatory requirement to have mortgage protection life insurance in place and assigned to the lender for PPRs - other than in limited circumstances where the borrower(s) circumstances mean that it's not available or would be outrageously expensive?during the Celtic Tiger when mortgage protection was almost an afterthought for PPR's and certainly most policies weren't assigned.
Like all the regulatory rules were followed in banking during the Celtic Tiger!!Really? I thought that it was a legal or at least regulatory requirement to have mortgage protection life insurance in place and assigned to the lender for PPRs - other than in limited circumstances where the borrower(s) circumstances mean that it's not available or would be outrageously expensive?
It was bought during the Celtic Tiger. I don't know why the banks would have neglected this. They made fortunes from sales of mortgage protection.It's a good requirement to have, even if they are related. A lot of investment properties don't wash their own faces when tax is added in. Add in that a death could mean the loss of an income in a family, it's better to have mortgage protection, which is fairly cheap.
This property in question could have been bought during the Celtic Tiger when mortgage protection was almost an afterthought for PPR's and certainly most policies weren't assigned. For RIPs, they just didn't look for it while giving people millions of euro in loans on the back of a phone call!
What does it say in the mortgage contract?
But the mortgage is generally secured on the property being purchased and nothing else? So that's the only actually legal security?In other words, sometimes banks lent money on the basis of the big-picture collateral/net-worth/life cover/human capital, etc.
I read it as you saying that the bank loaned money on the basis of there being other assets even if the loan wasn't secured on these.Hi Clubman,
Sorry if I'm being slow but I'm struggling to understand what you're getting at in your latest post?
I was simply making the comment that banks, on occasion, did lend money without having a specific life assurance policy attaching to a specific mortgage.
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