I have a situation where I have suggested the named executors walk away as the legal charges exceed the value of the property. The Property is the only asset.
If they do, to whom and when can they release the Will? Surely Administrators cannot be appointed without a Valid Will, which the named executors hold. So, how are the Creditors able to apply without the Will? and surely the executors can’t release it without knowing for sure who the named administrators are! Catch 22 or are there some provisions in place to cover this?
Its my understanding the terms of the mortgage agreement allows the lender to apply for repossession/forced sale (or appoint a receiver) on death/default. This is the action I’d suggest they’d take to recover the debt.
On death (single borrower) the mortgage becomes automatically payable.
Not applicable in this case - however, the lender would require a grant to pay any residue of the sale if the equity was positive.
There is no equity. The property is the only asset. The mortgage is one of 3 legal charges (the other two being CC enforced debts).
In total they exceed the value of the property.
I’ve reminded myself as to what has been done in previous, similar situations.
Suggest the executors renounce all rights to obtain a grant and lodge the will and renunciations with the Probate Registry.
All other papers they hold, together with the keys to the property should be passed to a solicitor who will notify the creditors what has been done and confirm that they will release the key upon receipt of a copy of the (creditor’s) grant. The creditors may be persuaded to accept responsibility for the solicitor’s costs involved in the arrangement
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
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