Beneficial Joint Tenants ownership of a house in negative equity after a death

[jeffreyfegan]

In 2007 I bought a house with my father & On the deeds of the property we our Beneficial Joint Tenants, the house was bought with £175,000 of borrowed money. Unfortunely my father died in 2009. My house was valued at 100K (due to drop in house prices) for his probate (bear in mind that means the house is now £75000 in negative equity at thid date of death. Basically the story is I have been told by my mums solicitor i now own 100% of the house and am responsible in paying back the £175000 to the bank, bascially i have taken on the mortage myself due to deeds stating we where Beneficial Joint Tenants. The bank asked me in for a meeting shortly after my fathers death and asked if i had any family members who would guarantor the £175000 loan (Which i answered no)

My fathers estate which my mum and brother (I am estranged from them both) were beneficiaries too is worth £950,000 made up of other properties (all mortage free and paid outright) and monies . Apparently the beneficiaries don’t inherit this half of my house due to ownership of the house being as Beneficial Joint Tenants (This would have been my fathers only debt- which i have seemed to inherit)

so my main question i need answered is, will the bank go after the beneficiaries if i am repossed (due to me losing my job) as i will be unable to pay the remainder of the negative equity in the property if it is sold off as a repossion?

[jeffreyfegan]

the house was bought in Northern Ireland

[bednobs]

it seems a bit convoluted, but i don't think they can go after the other beneficiaries of the will - this house has nothing to do with them at all

[Postdog]

And I think, strictly speaking, you haven't inherited his debt - it's just that where you were jointly responsible, now it's just you. Even if he had simply defaulted they could still chase you as you are named.

[bednobs]

plus the property isn't a part of the estate, and is yours alone, so it has nothing to do with any will or estate

[ladybirder]

Not an answer to your question, but could you either take in a lodger or let the whole property out until the market improves?

[hc4361]

Short, blunt but accurate answer.

1) You have not inherited his debt. The way you owned it - joint tenants - means you are now the sole owner, sole debtor and so are responsible for the mortgage in its entirety

2) The beneficiaries of his estate are in no way liable. The house was excluded from his estate and the beneficiaries have absolutely nothing to do with the mortgage.

[mike11111]

As hc says, that is the long and the short of it. It is a matter entirely between you and the lender.