How to value a mortgage

The amount outstanding can be deducted from the value of the estate.

As a result of an outstanding mortgage, there may be less – or no – inheritance tax.

How to "value" a mortgage

The amount outstanding on a mortgage can be valued by telephoning or writing to the mortgage company.

On request, they will advise as to the amount outstanding at the date of death. They can also provide a “redemption figure”, if different, which is the precise amount that must be repaid.

Freezing a mortgage

The mortgage company may agree to freeze the mortgage for a few months, while the probate process is ongoing. The company will discuss the options with you.

Mortgages on joint property

A mortgage is a debt secured over a property. Every mortgage is linked to a particular property.

If a mortgage is secured over joint property, the deceased will owe a share of the mortgage equal to his or her share of the property. If there were two joint owners, for example, the deceased will probably owe 50% of the mortgage (although uneven shares of property is possible).

In The Probate Wizard, each mortgage is linked to a particular property, and the deceased’s share of the mortgage is calculated automatically.