As probably your most valuable financial asset, it is important to know exactly what will happen to your home once you’re gone. Writing a will makes certain that you have your say on this important issue. More than this, it can be a great help to your family, by ensuring that their living arrangements are protected even if you die.
What do I do about my mortgage when writing my will?
Like with all things house-related, your mortgage is very important to how your will should be written. Although you can choose who will inherit your property, how they inherit this depends on what degree you own said property. But they are ways in which you can make sure there is as little hassle as possible in this transfer.
If you are the sole owner of the property, and have paid off the mortgage, then the property will go to your chosen beneficiaries as part of your estate. If you own the house by yourself, and have yet to pay off the mortgage, then the property will go to your chosen beneficiaries as part of your estate, along with the mortgage debt. If they would like to keep the property, then their credit will need to be assessed by the bank to make sure they can afford it.
If they are found to have the funds to pay off the monthly mortgage rates, then a new mortgage application can be approved, and the house will go to them. If they can’t pay off the monthly payments, or they simply don’t want it, then the property will be sold, and the proceeds will go towards paying off that mortgage.
If you own part of a property as a tenant in common, then the percentage you own of that property will pass to your selected beneficiaries. If you jointly own the property with a partner, and have paid off the mortgage, then the property will go to your surviving partner, regardless of your will. In the same way, if your partner dies before you, the property automatically passes to you.
If you own the property with a partner, and have yet to pay off the mortgage, then the property will go to your surviving partner, and they will assume the mortgage debt. Again, their credit will need to be assessed by the bank so that a new mortgage application can be approved.
Leaving property in your will
All you need to do to make sure your beneficiaries inherit your estate is to detail how exactly you own the property, whether by yourself, as a tenant in common or as a joint tenant. This is very important as it determines how your property will be apportioned in your will. It will also save your loved ones any hassle when it comes to determining ownership after you’re gone.
Kwil can help clarify any queries over the ownership of your property and makes allocating its liquidation as easy as possible.