When a property owner passes away, their estate enters the legal process known as probate,
during which assets are assessed, debts are settled, and beneficiaries receive their inheritance. One of the most frequently asked questions at London Estate Agency is:
“What happens to a mortgage during probate?” This is an essential concern for executors, heirs, and families managing the estate of a loved one.
Below, we outline everything you need to know in clear, practical, and professional detail,
including your options and how we at London Estate Agency can help streamline the entire probate property process.
Understanding Probate and Mortgages
Probate is the court-supervised process of administering a deceased person’s estate.
This includes verifying the will (if one exists), appointing an executor or administrator, valuing the estate, paying off debts (including mortgages),
and distributing what remains to beneficiaries.
A mortgage does not disappear upon death. Instead, it remains a debt secured against the property, and the lender will expect it to be settled.
How this is managed depends on several factors, including the type of mortgage, the deceased’s estate value, and whether the property is to be sold or retained.
Does a Mortgage Get Paid Off When Someone Dies?
No. Unless the deceased had mortgage life insurance, which is rare, or sufficient savings in the estate to clear the balance, the mortgage must be dealt with as part of the probate process.
The mortgage will continue to accrue interest during this time, and the lender will expect regular payments to be maintained.
This is why executors or administrators must act swiftly and with professional support.
What Happens to the Property If There’s a Mortgage?
There are three primary outcomes:
The Property Is Sold
The most common procedure is for the executor or personal representative to sell the property, pay off the mortgage from the sale proceeds, and distribute the remaining balance to the beneficiaries.
At London Estate Agency, we specialise in assisting probate property sales, particularly those involving complicated mortgage situations. We handle valuations, tenant issues, repairs, and the legal process from start to finish.
The Beneficiary Assumes the Mortgage
In some cases, a beneficiary may wish to keep the property. They can apply to take over the existing mortgage (subject to lender approval) or remortgage in their name.
This can be complex, particularly if multiple beneficiaries are involved, or the estate is still in probate.
We can liaise with solicitors, lenders, and financial advisors to ensure the mortgage transfer or new finance is handled smoothly.
The Estate Pays Off the Mortgage
The mortgage can be fully settled during probate if the estate holds sufficient funds.
This is typically the simplest outcome, but it is only possible if liquidity is available.
Our team can assess whether this is feasible and coordinate all required paperwork with the lender.
Who Is Responsible for the Mortgage During Probate?
The executor or administrator of the estate is legally responsible for managing all debts, including the mortgage.
If mortgage payments are missed during probate, the lender can issue arrears notices or even begin repossession proceedings.
We recommend working with experienced probate property professionals like us to avoid delays, interest accrual, or legal disputes.
What If There’s Negative Equity?
The estate is considered insolvent if the property is worth less than the mortgage balance. The executor may:
Negotiate with the lender for a voluntary sale to minimise loss
Allow the lender to repossess the property
Seek professional advice for debt restructuring or estate insolvency
We at London Estate Agency are well-versed in handling distressed probate properties.
We protect estate interests, negotiate with lenders, and explore the most beneficial outcomes.
How Long Can a Mortgage Be in Probate?
Typically, probate takes 6 to 12 months in the UK, but can take longer for complex estates.
During this time, it’s essential to maintain mortgage payments or communicate with the lender to avoid default.
Our probate specialists can act as intermediaries with mortgage providers, ensuring the estate remains in good standing during the entire process.
Selling a Probate Property With a Mortgage
This is one of our core services. At London Estate Agency, we:
Provide free probate property valuations
Manage all aspects of the property sale, including clearance and marketing
Assist with Section 13 Rent Reviews and tenant issues if the property is let
Handle negotiations with lenders and solicitors
Secure the best possible outcome for the estate and beneficiaries
We are London-based probate property experts who understand urgency, compliance, and sensitivity during these times.
Probate Property With Tenants? We Can Help
Many probate properties are rented out when the owner passes away. We offer complete tenant management services, including:
Rent collection
Tenant screening
Rent protection
Issuing legal notices and Section 21 or Section 13 documents
Preparing the property for sale or re-letting
We simplify the landlord obligations during probate and keep everything fully compliant with UK lettings laws.
Can the Bank Repossess the Property During Probate?
While it’s uncommon, lenders can begin repossession proceedings if mortgage payments are severely overdue and communication breaks down.
This is why we urge executors to seek expert help early on.
We immediately contact the lender, inform the estate, and prevent unnecessary escalation. Time is of the essence — and we act fast.
Why Choose London Estate Agency for Probate Property Services
Experienced probate property experts
Complete end-to-end service — from valuation to sale
In-house team for EPCs, compliance, tenant screening, and legal notices
Fast, efficient communication with solicitors and lenders
Transparent pricing with no hidden fees
London-wide coverage with a focus on sensitive service and speed
Frequently Asked Questions
Can I sell a house before probate is granted?
You can market the property and accept offers, but the sale cannot be completed until probate is granted.
Do I need to keep paying the mortgage during probate?
Yes, mortgage payments should continue. If the estate doesn’t have immediate funds, contact the lender and explain. Most lenders are understanding, especially if a sale is underway.
What if there’s no will?
The property will go through intestacy, and an administrator will be appointed. The mortgage still needs to be managed in the same way.
Do beneficiaries inherit mortgage debt?
Beneficiaries do not inherit debt but must either pay it off or take over the mortgage if they want to keep the property.
How quickly can you help sell a probate property?
We can begin within 24 hours, arrange a valuation within 48 hours, and have the property on the market in under a week.
Need help with a probate property that has a mortgage?
Contact us — we handle everything, so you don’t have to.
