Joint account
If the person who died was named on the mortgage alongside one or more other people, this is known as a joint borrower. There are two ways joint property can be held - joint tenants or tenants in common - and what happens to the property differs for each. Most commonly the property is Joint Tenants.
The mortgage will transfer to the sole name until we hear differently such as the below details being shared.
If you're the joint borrower and you're unsure how the property was held, we'll be able to let you know what is indicated in our records. You’ll need to seek legal advice for any further advice on this matter.
Joint tenants
The name of the person who has died will be taken off the mortgage and their share of the property will transfer to the other joint borrower. However, if the person who died was bankrupt, their share passes to the trustee in bankruptcy.
You don’t need a Grant of Probate for this to happen, just the death certificate, which you should also register at the Land Registry to remove the person who has died from the property title.
Tenants in common
The share of the property belonging to the person who has died won’t transfer automatically to the other joint borrower(s) in this instance. Instead, it will pass according to the instructions they left in their Will. If there is no Will, the property will be passed on according to the rules of intestacy (rules that come into effect when someone dies without leaving a Will).
Documents we require:
- Original Death Certificate
Sole account
If the mortgage was only in the name of the person who has died, they’re known as the sole borrower. This means the mortgage is a debt of their estate and must be repaid in full. The money to do this usually comes from a life policy, the estate, or from selling the property.
We can’t release full information about the mortgage to you until we’ve seen the original Grant of Probate (if there was a Will) or Letters of Administration (if there wasn't a Will) or Certificate of Confirmation (Scotland).
We're unable to transfer the mortgage to anyone else. If you’re a beneficiary, you or someone else can apply for a new mortgage for the property, but we can’t guarantee to accept the application, which would be subject to our affordability and lending criteria.
Documentation we require:
- Original Death Certificate
- Grant of Probate/ Letters of Administration/ Certificate of Confirmation