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QLD Property and Mortgage in Husband's Name - Mine when He Passes?

Discussion in 'Property Law Forum' started by jane aller, 16 September 2014.

  1. jane aller

    jane aller Member

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    Our mortgage for our home is in my husbands name only. We have been married 40 years. If he passed away am I entitled to the house and to keep paying the mortgage. We are both on a dissability pension? Thankyou Jane.
     
  2. Sarah J

    Sarah J Well-Known Member

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    Hi Jane,

    By creating a mortgage, your husband has conveyed his share in the property to the mortgagee (bank). This breaks the right of survivorship (a principle usually existing between spouses where if one co-owner dies, the surviving spouse takes the property wholly without any share going to the deceased's estate). This means that if your husband were to die, you would own half of the property (or some other share) and the bank would own the remaining share. However, the bank cannot exercise this right to possess unless there is a default on the mortgage repayments.

    Hence, I would suggest speaking with the bank and asking to transfer the mortgage to your name, or in shared names. This way, you can continue paying off the mortgage. Then have your husband create a will leaving his share in the property to you when he passes.
     
  3. jane aller

    jane aller Member

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    HI SARAH J - WILL THE BANK CHARGE TO PUT THE HOUSE INTO BOTH NAMES. WE DO NOT HAVE SPARE MONEY AS WE ARE ON A DISABILITY PENSION. CAN THEY ADD THE COST, IF THERE IS ONE, ONTO THE MORTGAGE. THANKS FOR YOUR PROMPT REPLY. THANKS JANE.
     
  4. Sarah J

    Sarah J Well-Known Member

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    Hi Jane,

    I am unsure, this would depend on your bank's policy. However, given your financial situation, if there is ordinarily a bank charge, you could appeal to the bank to waive this charge, as all you are doing is seeking to repay the mortgage under the original terms and the bank is primarily concerned with having the loans repaid. When you do speak with the bank, ask for a reference number for the enquiry and the employee number/name of the person with whom you're speaking and mention that you and your husband are in financial hardship and are disability pensioners.

    If the bank is unwilling to waive the charges, I suggest giving the Financial Ombudsman Services a call and seeking their help to assist you in waiving the fees. They will act as an independent negotiator (dispute resolution assistant) with the bank to come to a reasonable resolution. This will be a free service, however, it does require you to speak with your bank first.
     
    jane aller likes this.
  5. jane aller

    jane aller Member

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    Sarah J -Thanks heaps . Kind regards Jane.
     
    Sarah J likes this.

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