I am administering an estate for an intestate who died a year ago. The deceased had a complicated estate with some assets overseas and others subject to a dispute which has not yet been resolved.The estate did not liquid assets the sons borrowed money to pay the IHT. There is a mortgage which was payable on an interest only basis.
The bank has issued proceedings even if the Grant has been obtained this month. They have refused to cash the cheque discharging the interest. They say that the power of sale has arisen. They did not freeze the interest when they were notified of the deceased’s death by the son and so interest continued to accrue. They refused any offers for payment until letters of administration were obtained. The mortgage conditions do not state that they will only communicate with the estate when letters of administration are obtained. The property has more than enough equity to discharge their liability. The Hearing is taking place soon. Can we argue that they are being unreasonable by refusing negotiate with the Personal Representatives? The property is already on the market. Will the mortgage protocol assist my client in resisting the mortgage possession application?
Elizabeth Middleton Solicitors