Houses with only one name on each

paulsgirl

Hi,

My husband bought a house before we met which is still in his name. I have two houses in my own name (one is our family home).

Just wondering if anyone would know what would happen if either one of us died, would the mortgages be cleared by the banks? Is there any real benefit of getting the houses in both our names?

Thanks.

Victor

paulsgirl wrote: »

Just wondering if anyone would know what would happen if either one of us died, would the mortgages be cleared by the banks?

That would depend on whatever life insurance is in place.

The family home will have certain restrictions under the Family Home Protection Act - you can't sell it without your husband's consent.

You might be well advised to talk to someone about the legal situation and put wills, etc. in place.

paulsgirl

Thanks Victor. We do have a Will in place. I was more curious about whether the mortgage would be cleared or not.

I'll check out our life insurance. Thanks.

Peregrinus

Banks generally encourage (require?) you to effect mortgage protection insurance, which is basically a form of life insurance which will clear the mortgage should the borrower die. This is put in place when the mortgage is negotiated and granted. So if you took out your mortgages before you met your husband, it's likely that the mortgage protection insurance covers you only. And vice versa for the mortgage your husband took out before he met you.

Note that under this arrangement the mortgages are not cleared by the banks; the bank gets paid in full by the insurance company, so it's the insurance company that clears the mortgages. And this isn't done out of charity; the premiums on the mortgage protection insurance are paid by you. You probably don't notice the premiums because they are wrapped up in the monthly payment that you make to the bank.

Unless one of you is already ill, there is nothing to stop you effecting further insurance so that all the mortgages will be paid off if either one of you dies. There'll be an additional premium to pay.

paulsgirl

Ok thanks. I've had cancer, so financially, I can't afford to take out extra Life Insurance. I just want to get this cleared up. Should I call the Life Insurance Company or should I engage in a solicitor? Thanks.

plodder

Call the bank you have the mortgage with and they will tell you who the life cover is with. Then you can call that company to get the details.