Partner terminally ill

by Readers Question

13:59 PM, 15th November 2017
About 11 months ago

Partner terminally ill

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Partner terminally ill

My partner and I own 10 rental properties. All the title deeds and mortgages are in her name as I was made bankrupt some years ago. I have managed these properties alone since we purchased them.

In the event of her death what happens ?

Can I still operate this business, even though all banking is in one of her accounts ? I do have Power of Attorney. Does this help?

Thank you Chris



Comments

Neil Patterson

14:02 PM, 15th November 2017
About 11 months ago

Dear Chris,

I am very sorry to hear of your partners circumstances. The Power of Attorney will help you manage your partners affairs while they are alive.

Can I ask if the properties are mortgaged?
Do you know what the terms of the will are?

Ian Narbeth

14:07 PM, 15th November 2017
About 11 months ago

Chris
I recommend you urgently get legal advice. There are many things to consider including: Has your bankruptcy been discharged? Are you married or in a civil partnership? If not, are you the sole beneficiary of your partner's will? Are there mortgages over the properties? Will the bank roll them over to you? The Power of Attorney will end on death.
Whilst there is a wealth of experience on this forum, I doubt you want to discuss your financial affairs in public.

Puzzler

23:35 PM, 15th November 2017
About 11 months ago

Simply, no you can't. Her banks and mortgages will cease on her death. Get to a good solicitor now. Everyone is mortal so anyone in this position whether ill or not should make sure they have adequate provision for their death. Fellow Property118 readers, if you have not got a will, make it your Christmas present to yourself and your loved ones. I am not a solicitor but I have dealt with estates and it's a nightmare if you don't have one (and even sometimes with!)

Peter Fisher

9:27 AM, 16th November 2017
About 11 months ago

Dear Chris,
Sorry to hear of your circumstances. I deal with this of problem all day long and would be happy to help and assist and get things put on a good footing for you. You can contact me from my profile on this site

Natalia smith

10:36 AM, 16th November 2017
About 11 months ago

Dear Chris, I have been in similar situation when my husband passed away two years ago leaving me with 3 buy to let propertys on his name. Having a will just saved me some time but didn’t make major difference. You won’t be able to continue the business. Look at the mortgage terms - as far as Im aware most of mortgage providers have “mortgage must be paid back in full within one year from the death of the borrower” clause.
Considering the state of the market, the length of the process of sale and the fact that the potential buyer can withdraw from the sale at the last moment which happened to me three times makes the whole situation very stressful. And yes, if the properties mortgaged with the same mortgage company they will consolidate the debts.

Jan Martin

10:53 AM, 16th November 2017
About 11 months ago

I too have looked into similar situation few years ago Mortgages in my name and I asked mortgage providers if I could add my husbands name and they replied "we are not taking on anymore business". My other option would be taking out insurance which worked out too expensive.

Graham Bowcock

13:10 PM, 16th November 2017
About 11 months ago

Dear Chris

I am sorry to hear of your circumstances.

Without totally repeating what others have said, I do think you need some professional advice quickly; it can take months to re-arrange mortgages and ownerships, if indeed you are in a position to do so. You will obviously need your Partner's co-operation (or the ability to use the Power of Attorney).

One of the key things is that, although you start "My partner and I own 10 rental properties", it seems that you do not own them, she does.

At the very least you should ensure (assuming she agrees) that they become your houses on her death. If she dies intestate you may have a problem; she may have already made a will leaving everything to somebody else (perhaps before she met you or acquired the properties). Hence my view that the will is key, although alongside discussion with others involved.

I also suggest that you ensure that all paperwork for the properties is in order so that if you come to sell or re-mortgage this reduces delays and also doesn't lead to any unnecessary deductions in value. Bear in mind as well your ability to gain possession if this becomes essential.

Regards

Graham

Kirsty Cartwright

15:15 PM, 16th November 2017
About 11 months ago

Hi Chris

I'm sorry to hear about your partner. I don't think anyone else has mentioned that you cannot be an Attorney (Property and Finances LPA) if you are bankrupt. Therefore, the LPA that your partner has made may be redundant and need re-doing. You should both certainly see a solicitor about this and Wills, as unless you are married you will have no automatic rights in relation to your partner's estate.


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