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  • Writer's pictureSteve

I don't need life insurance.....

Unfortunately I've had a new enquiry this week, the client finds himself in a situation which was so avoidable.

The young man in question lost his Father last year, and as there was no will in place the estate had to go to Probate. That has taken 6 months, and now is complete. The property is to be transferred to my client's Mother.

Unfortunately there is a mortgage still outstanding on the property and as such the lender will not allow the property to be transferred until they have been repaid.

The clients Mum doesn't work and so cannot obtain a mortgage. So here's the catch, how can Mum repay the mortgage if she can't get a mortgage herself?

Her son contacted me to see if he could get a mortgage to repay the lender instead. But the property isn't in his name, and the Law of Probate states that the property must go to the next of kin of the deceased - in this case, his wife, so how can her son get a mortgage on a property he doesn't own?

In theory he could buy the property from Mum, but of course she doesn't yet own it because the lender won't allow it to be transferred into her name, and he can't buy it from the estate because a substantial deposit would be needed!!!

Do you see where this is going yet?

I am currently working with a lender who is happy to try help, and I am quietly confident I have put together a satisfactory solution, but we need the involvement of the clients solicitor that dealt with probate - and they aren't going to work for free...

So to the moral of this story. All this worry and heartache could have been avoided for less than £10 a month. If the Dad had taken out life assurance to protect the mortgage, on his death the policy would have paid out and his wife would now own the house.

So next time you hear someone say "I don't need life insurance" or "I don't believe in insurance" maybe share this story. It won't help them, but their family might be eternally grateful.

And yours would be too - get in touch here to discuss your own insurance options.

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