Refinance a Property in a Deceased Estate
What Happens to Property when One Partner Dies?
✅If death comes out of the blue, and there is no will in place, here are some facts around how home ownership works.
✅There are 2 types of joint ownership. These are tenants in common and joint tenants.
1. Tenants in common
✅A will usually determines where you partners share goes.
2. Joint tenants - the most common
✅You and your partner own equal shares.
✅If your partner dies, their share is bequeathed to your sole ownership.
✅You can now have a solicitor to revert the property title into your name only.
Who pays the mortgage if my partner dies?
✅You inherit the property and the mortgage.
✅Sometimes people who inherit a property with a mortgage need to sell the property to pay out the mortgage. This may happen if the lender wants to assess your ability to make the repayments on your own. You simply may not have the serviceability to make the repayments as a sole income.
✅Perhaps there is a refinance option to lower rates or extend out to a longer loan term.
How does a deceased estate work?
✅The deceased estate is transferred to a trust until it is instructed how the beneficiaries wish to proceed. This will depend if there's a will or not!
✅If there was a will in place, the executor of the will needs to lodge this with the probate court.
✅If there is no will, then the case will be assigned to a Supreme Court administrator and can take 2 weeks - 2 months to settle.
What's the process if there's no will?
✅The Supreme Court in your state will organise an executor to finalise the deceased estate.
✅The property will be dealt with according to succession laws of your state.
✅Speak to your solicitor about this.
Matthew Stack - mortgage broker
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